Heterodox Economics

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Definition of 'Heterodox Economics'

Heterodox economics is a school of economic thought that rejects the assumptions of mainstream economics. Heterodox economists believe that the economy is too complex to be modeled using simple mathematical equations, and that economic models should be based on real-world data and evidence.

There are many different schools of heterodox economics, but some of the most common include:

* Institutional economics: This school of thought emphasizes the importance of institutions, such as laws, regulations, and social norms, in shaping economic outcomes.
* Post-Keynesian economics: This school of thought builds on the work of John Maynard Keynes, who argued that government intervention is sometimes necessary to stabilize the economy.
* Marxist economics: This school of thought is based on the work of Karl Marx, who argued that capitalism is inherently unstable and that the only way to achieve a just and equitable society is through revolution.

Heterodox economics is often seen as a challenge to the mainstream economic orthodoxy, which is based on the principles of neoclassical economics. Neoclassical economics assumes that the economy is efficient and that markets will always reach equilibrium. Heterodox economists argue that this is not always the case, and that government intervention can sometimes be necessary to correct market failures.

Heterodox economics is a growing field, and there are now many academic journals and conferences dedicated to it. However, it is still not as well-known as mainstream economics, and many people are not familiar with its ideas. This is partly because heterodox economics is often seen as being more political than mainstream economics, and it is sometimes dismissed as being unscientific.

Despite this, heterodox economics has a lot to offer. It can help us to understand the complex and ever-changing world of the economy, and it can provide us with new ideas for how to improve it.

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