Title: Recognition of fundamental uncertainty as a key to the heterodox economics scientific supremacy
Authors: Angel Asensio
Addresses: University of Paris 13, Sorbonne Paris Cité, Centre d'Economie de Paris Nord, CNRS (UMR N 7234), F-93430, Villetaneuse, France
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.
Keywords: uncertainty; heterodox economics; Keynes; pluralism; open system theorising.
International Journal of Pluralism and Economics Education, 2013 Vol.4 No.2, pp.119 - 137
Available online: 28 Jul 2013 *Full-text access for editors Access for subscribers Purchase this article Comment on this article