Understanding the Global Financial Crisis: Sociology,Political Economy and Heterodox Economics

Abstract

This article argues that collective development of an understanding of the global financial crisis and ensuing austerity requires an alliance between sociology, ‘heterodox economics’ and related disciplines within the broad tradition of ‘political economy’. It introduces ‘heterodox economics’ as a body of thought that emerged in response to the failure of mainstream economics to theorise coherently the capitalist system as a whole, suggesting that heterodox economics is potentially an aid to overcoming the historical split between economics and sociology. The article argues that, beyond understanding the crisis, an alliance of sociology and heterodox economics can help strategically and politically in challenging and overcoming the theory, ideology and policy advice of mainstream economics. It can also help broaden ideas about how society and economy may be organised in a post-crisis future.