NEW PARADIGM | INTERECONOMICS
Paradigm shifts in economic theory and policy
by Laurie Laybourn-Langton and Michael Jacobs
PUBLISHED1. SEPTEMBER 2018
This paper seeks to understand the processes of paradigm shifts in economic ideas and policy. We begin with an explanation of the concept of a “politico-economic paradigm”, with reference to the theory and history of the two paradigm shifts occurring in the 20th century. We then examine how the second of these, the shift to “neoliberalism”, occurred. The final section assesses the degree to which economic and political conditions since the financial crisis offer an opportunity for a new paradigm shift away from neoliberalism.