Real World Economics
Methodological, Theoretical, and Critical Issues
1st Edition
Published on 15. August 2025
Book
Hardback
166 pages
978-1-032-97023-3 (ISBN)
Description
The starting point of this book is that economics is an applied science: a tool to understand the real-world economy and a guide for economic policy. In contrast to the unrealistic and artificial models of neoclassical economics, the book argues that the point of departure for economic theory should be the real world with realistic assumptions being made. The book explores the theoretical underpinnings of this real-world economics including the concepts of similarity (the relationship between economic models and real-world phenomena), evolution (economic change is a historical process in which recurrent patterns of growth, maturation, and decline exist), and uncertainty (the absence of knowledge of the full set of circumstances faced and the probabilities associated with them). Adopting a real-world approach also means accepting that human beings are cognitively constrained. They do not optimize, they satisfy and, thus, a real-world economic theory should incorporate bounded rationality. This book is essential reading for anyone seeking a deeper understanding of the economy, including readers from economics and across the social sciences. In this respect, it also includes some reflections on the failure of Third Way ideas to deliver on their promises. Having been incapable of changing the course impressed on the economy by the neoliberal experiment, that failure paved the way for a resurgence of nationalism, populism, and alternatives to liberal democracy, subjects analyzed in the last section of the volume.
Reviews / Votes
"There is a very welcome promotion of economic theory based on realistic assumptions, and of the theoretical underpinnings of this real-world economics including the concepts of similarity, evolution, fundamental uncertainty and cognitively constrained human being. Drawing on this approach, there are insightful discussions of the economic role of the State and financial crises, and reflections on the failure of Third Way ideas to deliver on their promises and the post neo-liberal disorder."Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UK
"Written by a tireless advocate for making economics reality-based, Real World Economics might just be Victor Beker's best book yet. He issues a clarion call for a useful economics, one that is directly based on the world we live in, since only a real-world economics can adequately explain how our world works. It is a sad commentary on the state of economics that a new book must be prefaced 'real world' but hopefully this book will succeed in pushing economics out of the realm of fantasy. With AI, climate change, and a host of other problems/challenges besetting us, we have no choice: We need a real-world economics."
Jack Reardon, Founding Editor of The International Journal of Pluralism and Economics Education and author of Questions for America: 2024 and Beyond (Routledge, 2025)
"Victor A. Beker's book deals with methodological, economic and political thought. The book shows his knowledge of this thought and of the various articulations of economic analysis and policy, which is very deep and complete. Of specific interest are the chapters on methodological issues, having a very detailed and relevant contents."
Nicola Acocella, Emeritus Professor of Economic Policy since 2014 at the Sapienza University of Rome and vice-president of the 'Societa Italiana degli Economisti' (Italian Economic Association) (2016-)
"The book provides a much needed reality check of several recent developments in mainstream macroeconomics after Keynes, and shows their hollowness in dealing with real world problems, and the cures suggest are often worse than the disease. This useful book should be must reading for teachers and students."
Amit Bhaduri, Former Professor, Jawaharlal Nehru University, New Delhi and Pavia University, Italy.
More details
Series
Language
English
Place of publication
London
United Kingdom
Publishing group
Taylor & Francis Ltd
Target group
College/higher education
Postgraduate
Dimensions
Height: 240 mm
Width: 161 mm
Thickness: 14 mm
Weight
440 gr
ISBN-13
978-1-032-97023-3 (9781032970233)
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Schweitzer Classification
Other editions
Additional editions
E-Book
08/2025
Routledge
€60.49
Available for download
E-Book
08/2025
Routledge
€60.49
Available for download
Person
Victor A. Beker is a Professor at the University of Belgrano and the University of Buenos Aires, Argentina. He has been Director of the Economics Department at the University of Belgrano and of the Economics Program at the University of Buenos Aires. He got several prizes for his works in Economics. Former Associate Editor of the Journal of Economic Behavior and Organization. Author of several Economics books and papers. He is co-author of Modern Financial Crises, Springer (2015) and co-editor of The European Crisis, WEA Books (2016). He edited Alternative Approaches to Economic Theory (2019), Routledge and authored two of its chapters. He also authored Preventing the Next Financial Crisis (2021), Routledge; Economics, Social Science and Pluralism: A Real World Approach (2022), Routledge; Baumol's Contribution to Telecommunications Regulation (2022), Emerald; and Economic Theory for the Real World (2024), Routledge.
Content
Preface 1. Methodological issues (I) 2. Methodological issues (II) 3. Time and Evolution in Economics 4. Some monetary and macroeconomic issues 5. Hayek, Keynes and the economic role of the state 5. Real-world financial issues 7. Revisiting business cycle theory 8. The post neoliberal (dis)order 9. The challenge to democracy 10. Synthesis and conclusions APPENDIX Why did Marx?s prophecies fail?