New Economics, paradigm shifts and the lack of philosophical foundations in economics or: is the future of economics heterodox?

The article discusses the ongoing debate about a potential paradigm shift in economics. Institutions like the Institute for New Economic Thinking, the New Eco-nomics Foundation, and the Forum New Economy have been established to foster new approaches to understanding and transforming economies. While some mainstream economists see this as a significant and positive change, many het-erodox economists remain sceptical, recalling past failed revolutions in economic thought, like the ‘Keynesian revolution’. The article examines whether purported changes in economic policy indicate a true paradigm shift in a scientific sense or just variations within the existing neo-classical framework. Despite some studies suggesting a paradigm shift is under-way, it is argued that these shifts in policy do not necessarily stem from fundamental changes in economic theory. Instead, they represent swings within the dominant paradigm, such as the rise of behavioural or Schumpeterian economics, rather than a complete overhaul of the discipline. The article concludes that while mainstream economics may become more diverse, this should not be mistaken for a revolutionary change. Heterodox econo-mists must continue to advocate for broader acceptance and genuine transformation in the discipline, rather than assuming that time alone will bring about such changes.