Beyond Markets: Critical Approaches to Economics - Essay Example

However, the recent economic crisis has raised ineffectiveness of mainstream economics to predict the behaviour of people and to understand the concepts of economics (Dequech, 2007). The present essay is based on developing a critique of mainstream economic views about the conception of markets by using a heterodox school of thought. In pursuit of the critique, the essay will also discover major differences between heterodox and mainstream economics along with strengths and weaknesses of mainstream models and approaches.

Heterodox economics involves those aspects which are beyond the theories taught in university or graduation schools. Heterodox economics is usually found in economic subdivisions and it is distributed through other social science divisions such as sociology, geography and commerce. In other words, heterodox economics subsists in niches which are less sternly restrictive in comparison to mainstream economics that is quite organised in nature. Heterodox economics comprises a number of old schools which were once mainstream but has been overhauled by neo-classical school of thought (Szostak, 2008).

On the other hand, mainstream economics incorporates those approaches to economics which are extensively acknowledged and taught in most universities and schools. Mainstream economics is based on mathematical models in order to learn economics. Mainstream economists consider that their propositions are valid globally, regardless of different contexts. It completely discards historical investigations. Mainstream economics is different from heterodox economics because mainstream economics does not permit unconventional methods to study economics.

In actuality, economics phenomenon is quite complex than what is described in mainstream economics. In other words, the interpretation of mainstream economics is quite basic in nature and has much generalised conceptions in comparison to ever-changing reality. In