We live in uncertain economic times. The financial crash and subsequent downturn have shaken the global economic system to its core. If one thing is certain, it is that the events of recent years have thrown mainstream economic thinking into disrepute.
In the aftermath of the crash, scholars and commentators are turning to new, heterodox economic theories as a way of better understanding how the economy really works and how the economic system might be managed more effectively. Yet although new economic thinking offers a far better account of how the economic system functions, we don’t yet have a clear idea of its implications for policymaking. In economic policymaking, orthodox economics remains the only game in town.
This book starts from the premise that insights from new economic thinking need to be taken seriously. It seeks to bring new economic thinking to the attention of policymakers and to reappraise the ways in which policy is designed and implemented when real-world economics is taken into account.