Heterodox Economics

DEFINITION of 'Heterodox Economics'

The analysis and study of economic principles considered outside of mainstream or orthodox schools of economic thought. Schools of heterodox economics include socialism, Marxism, post-Keynesian and Austrian, and often combine the macroeconomic outlook found in Keynesian economics with approaches critical of neoclassical economics.

BREAKING DOWN 'Heterodox Economics'

Heterodox economics provides an alternative approach to mainstream economics that may help give explanation to economic phenomenon that don't received widespread credence. In addition, heterodox economics seeks to embed social and historical factors into analysis, as well as evaluate the way in which the behavior of both individuals and societies alters the development of market equilibriums.

RELATED TERMS
  1. Mainstream Economics

    A term used to describe schools of economic thought considered ...
  2. Neoclassical Economics

    An approach to economics that relates supply and demand to an ...
  3. Applied Economics

    The application of economic theories and principles to real world ...
  4. New Keynesian Economics

    The modern macroeconomic school of thought that evolved from ...
  5. Austrian School

    An economic school of thought that originated in Vienna during ...
  6. Functional Finance

    A heterodox macroeconomic theory developed by Abba Lerner during ...
Related Articles
  1. Markets

    The Austrian School Of Economics

    Investopedia explains: If you think economists are only concerned with numbers, check out the Austrian School, who are more like economic philosophers.
  2. Markets

    Macroeconomics: Schools Of Thought

    By Stephen Simpson The field of macroeconomics is organized into many different schools of thought, with differing views on how the markets and their participants operate. ClassicalClassical ...
  3. Markets

    Economics 101

    Economics is the study of how individuals, governments, businesses and other organizations make choices that effect the allocation and distribution of scarce resources.
  4. Markets

    Macroeconomics: Conclusion

    By Stephen Simpson Given the enormous scale of government budgets and the impact of economic policy on consumers and businesses, macroeconomics clearly concerns itself with significant issues. ...
  5. Markets

    Central Bankers' Role in Keynesian Economics

    Learn about the role of monetary policy in Keynesian economics, and examine how central banks impacted aggregate demand in the aftermath of the 2008 crisis.
  6. Markets

    The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  7. Markets

    Macroeconomics: Introduction and History

    By Stephen Simpson In general, economics is the study of how agents (people, firms, nations) use scarce resources to satisfy unlimited wants. Macroeconomics is the branch of economics that concerns ...
  8. Personal Finance

    Is Private School for Your Child a Good Value?

    Parents want their kids to get a good education, but whether or not private school is worth it depends on more than just the cost.
  9. Markets

    Can Keynesian Economics Reduce Boom-Bust Cycles?

    Learn about a British economist's proposed solution to a common economic problem.
  10. Markets

    Economic Growth

    Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period.
RELATED FAQS
  1. How do different economic schools of thought treat the factors of production?

    Read about how different schools of economic thought treat the factors of production, both in terms of ownership and macroeconomic ... Read Answer >>
  2. How does neoclassical economics relate to neoliberalism?

    Read about neoliberalism and neoclassical economics, two political and economic movements that argued for lower taxes, less ... Read Answer >>
  3. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  4. What is the difference between Keynesian economics and monetarist economics?

    Discover how the debate in macroeconomics between Keynesian economics and monetarist economics always comes down to proving ... Read Answer >>
  5. Why do Keynesian economists focus on the lower boundary of interest rates?

    Understand the basis of Keynesian interventionism and how low interest rates are used as a policy tool. Examine Japan's Lost ... Read Answer >>
  6. What is the difference between macroeconomics and finance?

    Dive into the world of economics by learning the key differences between macroeconomics and finance. These ideas help investors ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center