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TERRA ECONOMICUS

The cyclical nature of transformations in economic orthodoxy


TERRA ECONOMICUS, , Vol. 22 (no. 3),

The article identifies the cyclical trends describing the emergence, transformation and decline of orthodoxy in economic theory, depending on the phase of technological and regulatory cycles. This study continues the author’s previous research. Using the historical example of two cycles of world economic dominance, namely, that of British and American ones, the author argues that economic orthodoxy entrenches and blossoms during the periods of advance in transport technologies and free trade regime established by the world economic leader. At the information and communication stage of technological development and corresponding globalist era of world economic development, orthodoxy incorporates the elements of other research frameworks, however, basic preconceptions persist. Through time, the outmoded orthodoxy experiences a terminal crisis. This period matches with the industrial economic development, accompanied by a protectionist world economic regime. At the same time, a set of new economic ideas claiming to be the new orthodoxy emerge and spread in the country representing the new world economic leader. The article describes the terminal stage of the crisis in neoclassical economics that coincides with the end of the cycle of America’s global dominance. As well, the crisis of neoliberal agenda within the neoclassical framework is highlighted, along with the attempts of academic community to transform the neoliberal paradigm into a new program, similar to the liberal Rooseveltian – Keynesian consensus of the mid-twentieth century. The relevance of political economy approaches (in their monetarist version) is brought forward. Besides, this study shows the efforts of some scholars from the Western academic community to propose fundamentally new economic paradigms, such as “quantum economics” and complexity economics.
Citation: Tolkachev S.A. (2024). The cyclical nature of transformations in economic orthodoxy. Terra Economicus 22(3), 6–20 (in Russian). DOI: 10.18522/2073-6606-2024-22-3-6-20
Acknowledgment: The article was prepared based on the results of research supported by the state assignment of the Financial University.


Keywords: orthodoxy; heterodoxy; neoclassicism; neoliberalism; political economy; mercantilism; world economic mode; technological mode; general purpose technology

JEL codes: В10; В13; В59

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606