Prospecting for political economy

This paper argues for a return to political economy in its best and earliest sense. Conventional economics has tried to colonise the social sciences from a narrow base in formalistic neo-classical theorising. It has failed as a guide to explaining economic development and crisis and become theoretically narrow. It is now in retreat in the wider social sciences but remains strong in the field of economics itself. Critics of the conventional wisdom like Stiglitz and Krugman cannot develop a full critique and attempts to develop mainstream alternatives through behavioural economics reproduce problems already apparent in the core approach. It cannot deal with the issues of power and conflict that are at the heart of the current situation.