Perceiving economic issues through a critical realist lens

Abstract

Neoclassical economics has established a dominant presence within economics and economics education but faces criticism for its alleged role in the failures of the last three decades, including its inability to predict the 20072008 global financial crisis. These shortcomings have led even proponents of neoclassical economics to question its capacity to explain real-world occurrences and inform policymaking. In this paper, I advocate for a different approach to understanding economic matters, specifically proposing critical realism as an alternative conceptual framework. Originating with Roy Bhaskar in the 1970s and evolving over subsequent decades, critical realism is discussed in this paper as a philosophical lens that aids in analysing the contemporary challenges within the economic sphere. Critical realism also offers insights into pedagogical strategies that facilitate students’ understanding of economics while presenting the discipline as engaging and pertinent.