Recognition of fundamental uncertainty as a key to the heterodox economics scientific supremacy. (1st January 2013)

• Record Type: Journal Article
• Authors: Asensio, Angel
• Is Part Of: International journal of pluralism and economics education. Volume 4:Number 2(2013)
• Page Start: 119
• Page End: 137
• Publication Date: 2013-01-01
• Subjects: uncertainty -- heterodox -- Keynes -- pluralism -- open system theorising; Economics -- Study and teaching -- Periodicals; Pluralism -- Periodicals; 330.071
• Languages: English
• ISSNs: 1757-5648

Abstract

This paper argues that the mainstream lack of realism comes from its reduced definition of uncertainty. By contrast, the fundamental uncertainty is shown to be the reason why the notion of an optimum is deprived of objective foundation and therefore rational decisions cannot discard the influence of psychological and sociological factors. Fundamental uncertainty also is shown to be the very reason why competitive markets alone would be subject to indeterminacy and instability and therefore institutional stabilisers do tame the potentially destabilising market forces endogenously. In addition, fundamental uncertainty is shown to be the very reason why it is economically rational for social groups to struggle about income distribution and markets (de)regulation. As the recognition of fundamental uncertainty moreover is consubstantial with a realistic open system theorising where history and path dependence matter, it is argued that it is a key of the heterodox economics scientific supremacy, a basic ingredient from which, beyond/thanks-to its diversity, heterodox economics may develop realistic alternatives to the mainstream.