An Alternative Economics Summer Reading List

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by Carolina Alves, , and Ingrid H. Kvangraven

This is a response list to recommending Economics books of 2018 for summer reading. While there are many good books listed, we were struck by the consistent monism in his choices, as the books are all by scholars based in either the UK or the US, 12/13 of the authors are men and most of them come from the same theoretical tradition. Such lists perpetuate the strong white male – and mainstream – biases in our field (the recent list by suffers from the same biases).

To counter these biases, and with the purpose of broadening our field to become more inclusive of diverse approaches and perspectives, we have put together an alternative list. We deliberately chose books by scholars approaching Economics with alternative theoretical frameworks and by scholars from groups that tend to be excluded from the field, namely women, people of color, and scholars from the Global South. We recognize that no one is exempt from biases, which is why we are providing an explanation for the motivation behind our selection. Due to institutional and language barriers we were unable to include as many scholars from the Global South as we would have liked. For example, we would love to read the new book by Laura Carvalho, but we are still waiting for the English translation. We hope you enjoy it and welcome more suggestions in the comments section.

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Free Trade Free for All: Market Romanticism Versus Reality

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The drama surrounding President Trump鈥檚 decision to impose import tariffs on steel and aluminum has roiled the Republican Party and wide swathes of the corporate elite. The tariff decision comes on the heels of . This accusation of 鈥渦nfairness鈥 when it comes to US trade deficits is well worn. In a previous era, Japan was the alleged culprit of 鈥渦nfair鈥 trade practices because of its persistent trade surpluses with the U.S.Read More »

What is missing in the 鈥33 Theses for an Economics Reformation鈥

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Andrew Simms (New Weather Institute), Sally Svenlen (RE student), Larry Elliott (Guardian), Steve Keen (Debunking Economics) and Kate Raworth (Doughnut Economics) symbolically nail the 鈥33 Theses鈥 to the door of the London School of Economics in December 2017. .

By Erik Reinert (Talinn University of Technology) and (Universitat Oberta de Catalunya)

On the occasion of the 500th anniversary of Martin Luther鈥檚 Reformation, were formulated by Rethinking Economics and the New Weather Institute. The document was symbolically nailed to the door of the London School of Economics In December 2017 and , and was supported by an impressive list of over 60 leading academics and policy experts. The initiative offers a rare and most welcome refreshing message from the House of Economics.

Several elements in the theses are long overdue 鈥 for example, the existence of planetary limits, the superiority of political deliberation over economic logic, the appreciation of the role of uncertainty in economic predictions, the non-independence of facts and values when economic thoughts are formulated, the warning against over-reliance on modelling, econometrics and formal methods. Also important is the indication that both growth and innovation need to be conceived with a desirable end in sight, one which can be associated with material and spiritual progress 鈥 rather than with misery, inequity and inequality. It is finally all important that in the teaching of economics itself the history and philosophy of economics should be taught, together with all economic theories: not just the family tree of mainstream economics.Read More »

Market Forecasting: A Sensitive Practice at the Heart of Neoliberal Capitalism

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This article was originally posted on .

Since the emergence of modern financial markets, financial analysts have played a critical role in producing visions of 鈥渢he economy鈥 and its future development. As experts, they analyze market developments and predict future scenarios that enable other financial market participants to speculate on the rise or fall of stock prices, the success or failure of particular investment products, and the growth or decline of entire national economies.聽The substance of the analysts鈥 valuation and forecasting practices is, however, heavily disputed among economists. In neoclassical economic theory, the assumption that markets are informationally efficient has challenged the legitimacy of the work of financial analysts since the establishment of the efficient market hypothesis as a central paradigm in the mid 1960s. Alternative schools of thoughts 鈥 such as new institutional or behavioral economics 鈥 have criticized this paradigm. However, they have also argued that the degree of uncertainty, which is inherent to financial markets, makes prediction impossible.Read More »

Advancing a Research Agenda of Scarcity, Abundance, and Sufficiency

Sidor fra虋n Daoud, thesis  with cover.jpgThe marginalist revolution in the late nineteenth century marked the beginning of the end of classical political economy and the birth of what came to be known as neoclassical economics (). All three pioneers of marginal utility theory鈥擟arl Menger (), William Jevons (), L茅on Walras () 鈥攔eferred to scarcity as the starting point for economic analysis. Through the work of these pioneers, especially Menger鈥檚, the centrality of scarcity became a core premise for the advancement of contemporary neoclassical economics (see Hayek 2004:19; Robbins 1998:277). As a result, virtually every neoclassical economic textbook refers to scarcity鈥攅ven though the field of economics is becoming increasingly differentiated.

I have argued in my research that scarcity problems are, and will remain, an important sub-set of problems, but we need to include sufficiency and abundance problems as well (Daoud , , , , , ). Under scarcity, economics will give us insights about how people optimize their behavior to get as much as possible out of their limited resources. Neoclassical economics is mainly interested in what we can call allocation problems under a scarcity assumption. If actor A has a set of resources R, that is scarce in relation to fulfilling a set of wants W. Neoclassical economics tells us that a rational actor will optimize his or her resources in such a way that person can derive as much utility U as possible given the circumstances. These types of problems are central to many social science issues鈥攖hey face governments allocating a limited budget to a myriad of popular demands, they face the individual in deciding if he or she should go to university or take a job. As social scientist, we need to keep analyzing these situations.Read More »

200 Years of Ricardian Trade Theory: How Is This Still A Thing?

maxresdefault.jpegOn Saturday, April 19th 1817, David Ricardo published The Principles of Political Economy and Taxation, where he laid out the idea of comparative advantage, which since has become the foundation of neoclassical, 鈥榤ainstream鈥 international trade theory. 200 years 鈥 and lots of theoretical and empirical criticism later 鈥 it鈥檚 appropriate to ask, how is this still a thing?[1]

This week we saw lots of praise of Ricardo, by the likes of , , and . Mainstream economists today tend to see the rejection of free trade implicit in Trump and Brexit as populist nonsense by people who don鈥檛 understand the complicated theory of comparative advantage (鈥溾, as Paul Krugman once called it in his explanation of why non-economists seem to not understand comparative advantage). However, there are fundamental problems with the assumptions embedded in Ricardo’s theory and there’s little evidence, if any, to back up the Ricardian claim that free trade leads to balanced trade. On this bicentenary, I therefore think it鈥檚 timely to聽revisit some of the fundamental assumptions behind Ricardo鈥檚 theory of comparative advantage, that should have led us to consider alternative trade theories a long time ago. Read More »

What Can We Learn from Alternative Theories of Economic Development?

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As people across the world are struggling to understand the rise of Trumpism, anti-establishment and anti-free trade movements, (Tallinn University of Technology), (Jawaharlal Nehru University) and (Tallinn University of Technology) have put together an impressive that can help make sense of what’s going on. As the field of Economics has become increasingly narrow since the 1970s, many important scholars and theories have been excluded from the field, and since forgotten. This Handbook presents rich historical accounts and ideas that can help explain economic and social development, and is a much needed attempt to correct for the existing biases in the field of Economics.Read More »

Beyond the Third Moment in Law and Development: New Insights from Legal Political Economy

This blog post provides insights from what I have come to call the legal political economy perspective to critique the World Bank and neoclassical economics more generally. At the heart of what has been called the World Bank鈥檚 Third Moment in Law and Development is the claim that government involvement is necessary to eliminate 鈥渕arket failures鈥 and promote both business development and social justice.

In contrast to the mainstream Law and Economics (L & E) approach, which informs the Third Moment, my position, derived from the Critical Legal Studies (CLS) tradition (and its historical ancestor, Legal Realism), is:

  • Property is fundamentally a bundle of rights and thus property ownership at its core entails coercive power struggles between rivals and between owners and non-owners; coercion at its core.
  • The interrelatedness of law and power relations (鈥淚f the program of Realists was to lift the veil of legal Form to reveal living essences of power and need, the program of the Critics is to lift the veil of power and need to expose the legal elements in their composition鈥 (, 109)). These power struggles over economic outcomes occur within the context of background laws that determine property, contracts, and torts.
  • The notion of an economic seesaw in with potential for instability in property and contractual relations.
  • If the goal is to understand how legal structures shape power struggles then the question becomes how are the laws themselves to be determined? Following the CLS perspective, I would emphasize the role of ideational factors determining the intellectual underpinnings of neoliberal policies鈥攆actors that have consciously been created by the financiers of the L & E tradition.

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