New Economics

New economics is the study of human behaviour in social groups – influenced by culture, location and history – in pursuit of monetary gain. It emphasises institutions, uncertainty, altruism, diversity and ethics. It recognises consumer diversity, economics of specialisation and scale, uncertainty, bounded rationality, inherent technological change and the endogeneity of money as critical elements. It is distinguished from the old economics characterised by equilibrium, representative agents, certainty equivalence and determinism.

For further reading, other websites promoting new economics include:


Relevant papers:

“Towards New Thinking in Economics: Terry Backer on structural macroeconomics, climate change mitigation, the relevance of empirical evidence, and the need for a revised economics discipline”

Spatially Rebalancing the UK Economy: Towards a New Policy Model?” – Martin et al., 2015

“Critical Survey. The new ‘geographical’ turn in economics: some critical reflections” – Martin, 1999



Arestis, P. and González-Martinez, A. (2015) “The Absence of Environmental Issues in the New Consensus Macroeconomics is only One of Numerous Criticisms”, in P. Arestis Sawyer (eds), Finance and the Macroeconomics Environmental Policies, Annual Edition International Papers in Political Economy, Palgrave Macmillan. Available on Springer.

Coyle. D. (2019) Homo Economicus, AIs, humans and rats: decision-making and economic welfare, Journal of Economic Methodology, 26:1, 2-12, doi:10.1080/1350178X.2018.1527135

Martin, R., Pike, A., Tyler, P. and Gardiner, B. (2016) Spatially Rebalancing the UK Economy: Towards a New Policy Model? Regional Studies, 50, 342-357, doi:10.1080/00343404.2015.1118450

Martin, R. (1999) Critical Survey. The new ‘geographical turn’ in economics: some critical reflections. Cambridge Journal of Economics, 23, 65-91. Available on JSTOR.

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