Post-war heterodox approaches and economic policy

McMaster, R. (2023) Post-war heterodox approaches and economic policy. In: Drakopoulos, S. and Katselidis, I. (eds.) Economic Policy and the History of Economic Thought. Routledge: London and New York, pp. 206-223. ISBN 9781032131962 (doi: 10.4324/9781003228097-13)

Abstract

Frequently, heterodoxy is described with reference to what is taken to be the mainstream, or orthodoxy, especially in terms of methods. Arguably, this debate is reflected in approaches to, and advocacies of economic policies. For the purposes of this chapter, heterodox economics is described with reference to a range of schools of thought, including, but not limited to Austrianism, Institutionalism, Post Keynesianism, and Radical Political Economy. Based on this, it is apparent that there is no single ‘heterodox’ approach to economic policy. Indeed, policy stances transcend distinctions between heterodoxy and the mainstream, with, for example, Austrianism demonstrating a close ideological affinity to the Chicago School. This chapter attempts to provide an overview in tracing the evolution of heterodox approaches to economic policy, which emerge partly in response to developments in mainstream thinking, such as the macro consensus around New Keynesianism and neoliberalism, which was severely challenged by the 2007-08 financial crisis. In doing so, the chapter refers to the trajectory of Post Keynesianism, arguably the most prominent heterodox school. The emergence of two high profile policy-rich approaches, one nested in Post Keynesianism (modern monetary theory, MMT), the other, stratification economics (SE) are discussed as illustrative of heterodox alternatives to neoliberalism.

• Item Type: Book Sections
• Status: Published
• Glasgow Author(s) Enlighten ID: McMaster, Professor Robert
• Authors: McMaster, R.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Publisher: Routledge
• ISBN: 9781032131962

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