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The role of belief in the debate over austerity policies

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  • Sheila C. Dow

    (University of Stirling)

Abstract

The purpose of this paper is to argue that awareness of the epistemological issues arising from an open-system ontology is critical to understanding the crisis and the policy response, to challenging that understanding and to encouraging a radical policy shift. The argument is couched in terms of belief as an epistemological concept. In particular the paper addresses the misleading impression, persuasively conveyed by mainstream economists, that their argument for austerity is ‘scientific’ and independent of ideology, power and ethics. The resulting widespread belief in austerity policies as scientifically justified has prevented arguments against austerity gaining more traction. The critique of austerity policies would therefore be strengthened by a critique of this rhetorical (mis)representation of economic theorising.

Suggested Citation

  • Sheila C. Dow, 2014. "The role of belief in the debate over austerity policies," Working Papers PKWP1409, Post Keynesian Economics Society (PKES).
    • Handle: RePEc:pke:wpaper:pkwp1409
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    File URL: https://www.postkeynesian.net/downloads/working-papers/PKWP1409.pdf
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    References listed on IDEAS

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    4. Lucas, Robert E, Jr, 1980. "Methods and Problems in Business Cycle Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 696-715, November.
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    7. Dow, Sheila, 2002. "Economic Methodology: An Inquiry," OUP Catalogue, Oxford University Press, number 9780198776123.
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    14. Sheila C. Dow & John Hillard (ed.), 1995. "Keynes, Knowledge And Uncertainty," Books, Edward Elgar Publishing, number 148.
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    Cited by:

    1. Sindzingre, Alice, 2021. "Truth vs. justification: Contrasting heterodox and mainstream thinking on development via the example of austerity in Africa," IPE Working Papers 155/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    2. Alice Nicole Sindzingre, 2021. "Truth vs justification: contrasting heterodox and mainstream thinking on development via the example of austerity in Africa," CEPN Working Papers hal-03139457, HAL.
    3. Alice Nicole Sindzingre, 2021. "Truth vs justification: contrasting heterodox and mainstream thinking on development via the example of austerity in Africa," Working Papers hal-03139457, HAL.

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    More about this item

    Keywords

    Fiscal austerity; science; belief;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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