The world economy is a mess because economics is a mess. Professor John T. Harvey argues that with too much focus on abstract mathematical puzzles over real-world situations, and the promotion of Neoclassical orthodoxy at the expense of all other perspectives, the discipline of economics is becoming both intellectually impoverished and unable to help rebuild a better economy.

[…]

photo credit: Pixabay

We told ourselves that we know how economies work.

The economic crisis that began in 2008 showed how wrong we were.

The individualistic formalism of basic neoclassical economics had held sway in the World Bank and the IMF and in many government ministries. The crisis challenged its control of the commanding heights of policy and public debate, and many have called for a better view of economy to replace that neoclassical paradigm. […]