Heterodox economics refers to all the different theories and schools of thought that go beyond the mainstream Keynesian and neoclassical approaches.
A wide range of competing and conflicting economic schools can at any time be classified as unorthodox economic theory, although their ideas may eventually become generally accepted.
Heterodox economists advocate theories, assumptions, or methods that may be radically different from or contrary to those used in mainstream economic theory.
Heterodox economic theory plays an important role in the development of new ideas and challenges established schools of economic thought.
Unorthodox theories such as the Austrian Business Cycle Theory (ABCT) and the Minsky Financial Instability Hypothesis rose to prominence during the Great Recession because they provided convincing explanations that traditional theories did not.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
Automatic Stabilizers is a permanent government policy that automatically adjusts tax rates and transfers payments in a way that stabilizes income, consumption, and business spending over the business cycle.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.