10 Pages Posted: 10 Jan 2015 Last revised: 16 Jan 2015
Date Written: January 8, 2015
The consensus is that orthodox economics is a failure in three dimensions: conceptual, methodological, and empirical. Heterodoxy has meticulously sorted out the multitude of errors, mistakes, and distortions. Yet, this alone does not help out of stagnation. Economists have now to go into constructive mode. The most urgent task is to replace the misleading supply-demand equilibrium representation of the market. The reconstruction of the centerpiece of the market system from scratch paves the way to the new paradigm. Nobody can talk about the market system without a correct idea of how the market works. Heterodox economists must take the innovative lead.
Keywords: new framework of concepts, structure-centric, Law of Supply and Demand, market clearing, budget balancing
JEL Classification: B59, D40
Suggested Citation: Suggested Citation