Question

This format should allow you more time to think about your answer. You can also use the readings to support your answer. Be sure to cite the author and page number for all quotes or ideas taken from one of the authors (e.g. Chang, p. 81). The length of your answers should range from 1-3 paragraphs, depending on the complexity of the question.

Interest in Heterodox economics is increasing. What events have taken place to bring more attention to heterodox perspectives? Explain, in particular, the alleged shortcomings of neoclassical economics in relation to these recent economic events.  

Answer 1

Interest in Heterodox economics is increasing. What events have taken place to bring more attention to heterodox perspectives?

• Heterodox economics does not move around the mainstream economics topics. Instead, it is affected and influenced by the sociology, Austrian school of thought, environment, post Keynesians etc.
• Main reason behind the rise of heterodox perspective is complex issues that are being confronted in contemporary world. Such types of issues were not witnessed during the era of classical.
• Hence, study areas of Heterodox economics are incongruous with classical economics.

Explain, in particular, the alleged shortcomings of neoclassical economics in relation to these recent economic events.  

• Classical economics does not cover the issues that have strong and pernicious implications for society as whole such as environment.
• Classical economics treat economics as separate discipline while heterodox economics regards economics as interdisciplinary subject and economic problems are interdisciplinary.
• Classical economics focuses on rationality equilibrium and individualism. While the heterodox economics moves around the social structure and human behavior.