Economic Theory for the Real World

The book discusses the development of new economic theories that are better suited to understanding the real-world economy after the Great Financial Crisis. It emphasizes the importance of considering the economy as a dynamic system with a past, present, and future and as a complex one. The book applies these theoretical precepts to pressing economic issues such as ecological sustainability, corporate power, financial dominance, and rising unemployment, poverty, and inequality, demonstrating the shortcomings of the neoclassical approach and offering policy proposals to address these problems.

Format: Hardback
Length: 160 pages
Publication date: 03 November 2023
Publisher: Taylor & Francis Ltd

After the Great Financial Crisis, economic theory faced severe criticism for its inability to explain a crisis of such magnitude. However, a gradual shift in economic thinking is underway, with new strands of economic thought emerging to challenge the traditional neoclassical theory. These new approaches are better equipped to understand the complex workings of the real-world economy.

This book explores the key principles and applications of these emerging economic theories. It begins by introducing the "real world" approach to economics, which involves creating theoretical models that resemble real-world situations, making realistic assumptions, and incorporating factors such as uncertainty, coordination problems, and bounded rationality. The book also examines the economy as both a dynamic system with a past, present, and future and a complex one.

The real-world economy's theoretical precepts are then applied to some of the most pressing economic issues facing the world today, including ecological sustainability, the rise of corporate power, the growing dominance of the financial world, and rising unemployment, poverty, and inequality. In each case, the book highlights the shortcomings of the neoclassical approach, which fails to provide a comprehensive understanding of these complex issues. By contrast, adopting an approach grounded in the real world reveals the potential for policy proposals that can address these problems effectively.

This book is a valuable resource for anyone seeking a deeper understanding of the economy, including economists, social scientists, policymakers, and concerned citizens. It provides a comprehensive and insightful analysis of the current economic landscape and offers practical solutions to the challenges we face.

Weight: 480g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032498546