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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
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    References listed on IDEAS

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    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. 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.
    3. Stiglitz, Joseph E, 1991. "Another Century of Economic Science," Economic Journal, Royal Economic Society, vol. 101(404), pages 134-141, January.
    4. 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.
    5. Mika Kato, 2016. "Jean Tirole, Nobel Prize Winner," Review of Political Economy, Taylor & Francis Journals, vol. 28(1), pages 23-44, January.
    6. 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.
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    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)

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