Rethinking Economics

Mainstream neoclassical economics has its merits, but nine alternative schools of economic thought offer valuable insights.

Many people believe that the way universities teach economics is too narrow in its scope and too focused on neoclassical, free market ideology. Nine alternative schools of thought could counter that overreliance. Some of these directly challenge the standard economic model (SEM) in its central tenets, and all highlight areas neglected by conventional economics.

Post-Keynesian economics identifies the dangers of financial market excess combined with easy money creation.

Post-Keynesian (PK) economists contend that the so-called New Keynesians who came along after John Maynard Keynes ignored many of the important points he made. PK economists do not accept the neoclassical-Keynesian synthesis concept of “sticky” wages as responsible for unemployment during economic slumps. Instead, they want to return to understanding the dangers of downward spiraling aggregate demand and confidence.While New Keynesian ideas developed during the post-World War II period, when the financial...