On the Methodological Foundations of Mainstream and Heterodoxy in Economic Theory in the End of the XIX - the Beginning of the XXI centuries

Abstract

The paper deals with the evolution of economic method during the last centuries. The author argues that the Marginalist Revolution in the end of the XIX century created radically new vision of the subject-matter and method of economic theory. As a result, contemporary mainstream economics is now based on the assumptions of methodological individualism, optimization and absence of "genuine" uncertainty. These processes have strongly diminished the potential of economics. As a response various heterodox conceptions have emerged emphasizing different kinds of non-optimizing and/or group behavior and also stressing the importance of complexity, volatility and "genuine" uncertainty of economic environment. In this respect, in particular, the paper shows that J. M. Keynes’ theory is beyond contemporary mainstream economics.