IDEAS home Printed from https://ideas.repec.org/a/avo/emipdu/v28y2019i2p681-697.html
   My bibliography  Save this article

The Queen Asked: State Of Mainstream Economics

Author

Listed:
  • Hassan Syed

    (BPP University UK, Islamic Finance Law)

  • Sema Yilmaz Genc

    (Kocaeli University, Department of Marketing and Advertising)

Abstract

The neoclassical economics owes its development to Alfred Marshall and Leon Walras in the late 19th century. Marshall is also attributed with the partial equilibrium theory. Walras is known for his general equilibrium theory. Both Marshall and Walras are also attributed with the introduction of mathematics in their explanations of economic phenomenon. Since their time mathematical economics has reached new heights. Marshall, a British economist relied on the Ceteris paribus assumption principle. Walras, a French mathematician used laissez-faire as his assumption principle. Neoclassical economics saw major changes post the Great Depression. The 1929 Great Depression changed the economic views of John Maynard Keynes who was the ardent fan and star pupil of Marshall. Over time, the rational behaviour of agents and value proposition helped change the various proposed models in mainstream economics. The 2008 global financial crisis jolted the sensibilities of the entire world. Since the last decade trillions of dollars have been pumped into the global financial systems to ensure that the mega-financial institutions do not fail. Several Nobel Laureates in Economics including other prominent economists have questioned the mainstream academia’s ethical position and their inability to predict the 2008 financial crisis. Her Majesty the Queen of England called the crisis ‘Awful’. Her Majesty is known for her remarkable ability to clad public display of emotions. This paper aims to examine the failings of the mainstream economics in light of the existing scholarly literature on the topic. The authors believe that the mainstream economic is in dire need of overhaul.

Suggested Citation

  • Hassan Syed & Sema Yilmaz Genc, 2019. "The Queen Asked: State Of Mainstream Economics," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(2), pages 681-697, december.
    • Handle: RePEc:avo:emipdu:v:28:y:2019:i:2:p:681-697
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/clanak/335146
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. D. Colander & H. Follmer & A. Haas & M. Goldberg & K. Juselius & A. Kirman & T. Lux & B. Sloth, 2010. "The Financial Crisis and the Systemic Failure of Academic Economics," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    2. John P. Conley & Ali Sina Onder, 2014. "The Research Productivity of New PhDs in Economics: The Surprisingly High Non-success of the Successful," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 205-216, Summer.
    3. Mika Kato, 2016. "Jean Tirole, Nobel Prize Winner," Review of Political Economy, Taylor & Francis Journals, vol. 28(1), pages 23-44, January.
    4. Christian Arnsperger & Yanis Varoufakis, 2006. "What Is Neoclassical Economics? The three axioms responsible for its theoretical oeuvre, practical irrelevance and, thus, discursive power," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 53(1), pages 5-18, March.
    5. Robert W. Dimand, 2007. "Keynes, IS-LM, and the Marshallian Tradition," History of Political Economy, Duke University Press, vol. 39(1), pages 81-95, Spring.
    6. Stiglitz, Joseph E, 1991. "Another Century of Economic Science," Economic Journal, Royal Economic Society, vol. 101(404), pages 134-141, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Situngkir, Hokky, 2012. "Indonesian Stock Market Crisis Observation with Spectral and Composite Index," MPRA Paper 35961, University Library of Munich, Germany.
    2. Levy, Daniel & Mayer, Tamir & Raviv, Alon, 2022. "Economists in the 2008 financial crisis: Slow to see, fast to act," Journal of Financial Stability, Elsevier, vol. 60(C).
    3. Alessio Emanuele Biondo, 2018. "Order book microstructure and policies for financial stability," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 35(1), pages 196-218, March.
    4. Matthias Lengnick & Hans-Werner Wohltmann, 2013. "Agent-based financial markets and New Keynesian macroeconomics: a synthesis," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(1), pages 1-32, April.
    5. Germana Bottone, 2009. "A new notion of progress: Institutional quality," ISAE Working Papers 117, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    6. Brooks, Chris & Fenton, Evelyn & Schopohl, Lisa & Walker, James, 2019. "Why does research in finance have so little impact?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 24-52.
    7. Koenig, Michael & Hsieh, Chih-Sheng & Liu, Xiaodong & Zimmermann, Christian, 2018. "Superstar Economists: Coauthorship networks and research output," CEPR Discussion Papers 13239, C.E.P.R. Discussion Papers.
    8. John Rust, 2014. "The Limits of Inference with Theory: A Review of Wolpin (2013)," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 820-850, September.
    9. Blair Fix, 2022. "Economic development and the death of the free market," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 1-46, April.
    10. Fine, Ben, 2002. "Economics Imperialism and the New Development Economics as Kuhnian Paradigm Shift?," World Development, Elsevier, vol. 30(12), pages 2057-2070, December.
    11. Thomas Theobald, 2015. "Agent-based risk management – a regulatory approach to financial markets," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(5), pages 780-820, October.
    12. Gordon Burt, 1997. "Cultural Convergence in Historical Cultural Space-Time," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(4), pages 291-305, December.
    13. Jun, Bogang & Kim, Tai-Yoo, 2015. "A neo-Schumpeterian perspective on the analytical macroeconomic framework: The expanded reproduction system," Hohenheim Discussion Papers in Business, Economics and Social Sciences 11-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    14. Stephan Puehringer, 2021. "Zur Pluralitaet der oekonomischen Politikberatung in Deutschland," ICAE Working Papers 132, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    15. Gebhard Kirchgässner, 2009. "Die Krise der Wirtschaft: Auch eine Krise der Wirtschaftswissenschaften?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(4), pages 436-468, November.
    16. Justus Haucap & Johannes Muck, 2015. "What drives the relevance and reputation of economics journals? An update from a survey among economists," Scientometrics, Springer;Akadémiai Kiadó, vol. 103(3), pages 849-877, June.
    17. Sergey V. Popov, 2023. "Arithmetics of research specialization," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1013-1021, October.
    18. Dirk Helbing, 2013. "Economics 2.0: The Natural Step towards A Self-Regulating, Participatory Market Society," Papers 1305.4078, arXiv.org, revised Jun 2013.
    19. Abdala Rioja, Yamile E, 2011. "All Things Considered: The Interaction of the Reasons for the Financial Crisis," MPRA Paper 33408, University Library of Munich, Germany.
    20. Peter J. Boettke & Alexander W. Salter & Daniel J. Smith, 2018. "Money as meta-rule: Buchanan’s constitutional economics as a foundation for monetary stability," Public Choice, Springer, vol. 176(3), pages 529-555, September.

    More about this item

    Keywords

    Neoclassical Economics; Alfred Marshall; Leon Walras; Mainstream Economics;
    All these keywords.

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:avo:emipdu:v:28:y:2019:i:2:p:681-697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nebojsa Stojcic (email available below). General contact details of provider: https://edirc.repec.org/data/oedubhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.