Economists face at least two conflicting visions of the market economy, the New Classical and the Schumpeterian or evolutionary. These reflect two distinct scientific paradigms, Newtonian and Darwinian. The canonical version of New Classical economics can be found in most modern macroeconomic textbooks. Evolutionary economics does not have an agreed canonical version nor has it ever been mainstream, but it is the major alternative world view to the new Classical and commands significant support. This project has important implications for the understanding of long term economic growth, shorter term business cycles, stabilization policy and industrial and development policy.
Policy Implications of Darwinian Versus Newtonian Views of the Economy