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Economic Theory and Policies: New Directions After Neoliberalism

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New Economics as Mainstream Economics

Part of the book series: International Papers in Political Economy Series ((IPPE))

Abstract

This contribution attempts to go beyond the recent and current trends in terms of economic theory and policy. It is the case that the New Consensus Macroeconomics theoretical framework has dominated macro-economic analysis in recent years and has in effect underpinned many macroeconomic policies. However, given the current experience with the ‘great recession’ crisis, the question arises whether there is not a better paradigm and set of economic policies that can lead the economy to an improved economic performance. This is precisely the focus of this contribution. Our response is very much that there is. In this contribution we propose another theoretical framework before moving to economic policy questions. The general background to the theoretical framework is that the analysis is of a monetary production economy in which finance and credit play a significant role. It relates to an economy, which has degrees of instability, and there is often inadequacy of aggregate demand. The level and distribution of productive capacity can often be inadequate for underpinning the full employment of labour.

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Author information

Authors and Affiliations

  1. University of Cambridge and University of the Basque Country, UK

    Philip Arestis

  2. University of Leeds, UK

    Malcolm Sawyer

Authors
  1. Philip Arestis
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  2. Malcolm Sawyer
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Editor information

Editors and Affiliations

  1. University of Cambridge, UK

    Philip Arestis

  2. University of the Basque Country, Spain

    Philip Arestis

  3. Economics Department, University of Leeds, UK

    Malcolm Sawyer (Professor of Economics and Head) (Professor of Economics and Head)

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© 2011 Philip Arestis and Malcolm Sawyer

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Arestis, P., Sawyer, M. (2011). Economic Theory and Policies: New Directions After Neoliberalism. In: Arestis, P., Sawyer, M. (eds) New Economics as Mainstream Economics. International Papers in Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230307681_1

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