Cover -- Half Title -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- List of Tables, Figures, and Boxes -- Preface -- Acknowledgments -- Note to Instructors -- 1. Philosophical Debates in Economics -- A Riddle -- Paradigms in Economic Theory (or Why Economists Disagree) -- Definitions -- Blank Slate Theory of Knowledge -- Paradigmatic Theory of Knowledge -- Normal Science and Scientific Revolutions -- Some Study Questions -- Simple Review Questions (Making Sure You Got the Basic Ideas) -- More Thought-Provoking Discussion Questions -- Learning New Paradigms -- Conclusion: Some Implications of a Paradigmatic Theory of Knowledge for Social Science and Economics -- Centrality of Paradigms to Research Results -- Distinguishing Between Inter- and Intra-Paradigm Debates -- Indeterminacy of Paradigm Debates -- Pedagogical Implications -- Final Questions for Discussion -- Notes -- 2. Thinking Differently: Neoclassical Versus Heterodox Economics -- Texts, Subtexts and Basic Orientations -- Introduction and Chapter Overview -- Well-Being -- Implied Readers -- Methodological Individualism (MI) Versus Holism (H) -- Introduction -- Methodological Individualism (MI) -- Holism (H) (or Holist Structuralism [HS]) -- Texts and Subtexts in Economics -- Illustrative Neoclassical Subtexts -- Illustrative Heterodox Subtexts -- Study Questions -- Review Questions -- Discussion Questions -- Notes -- 3. Competing Assumptions, Methods, and Metaphors -- Introduction -- Methodological Critiques -- Heterodox Objections to Excessive Abstraction: The Fallacy of Misplaced Concreteness -- Heterodox Critiques of Homo Economicus ("Rational Economic Man" or REM) -- Heterodox Objections to Neoclassical Theory's Treatment of Work and the Labor Process -- Heterodox Perspectives on How Markets Work -- Threads -- Distributional Issues -- Gender Issues.

Environmental Issues -- Telling Other Stories: Heterodox Critiques of Neoclassical Metaphors and Stories -- Robinson Crusoe and Friday -- Final Image -- Study Questions -- Review Questions -- Discussion Questions -- Notes -- 4. New Beginnings: Heterodox Critiques of the Introductory Chapters in Neoclassical Principles Texts -- Introduction -- Is Neoclassical Economic Theory a Science? -- The Positive/Normative Distinction -- What Is Economics? -- The Limits of Scarcity and Efficiency Discourse -- Marginalism -- The Ceteris Paribus (All Things Equal) Assumption -- The Circular Flow: Directions -- Some Loud Silences -- Textbook Images and Metaphors -- Consumer Sovereignty -- Free Markets and Voluntary Exchange -- The Invisible Hand -- Some Alternative Heterodox Images -- People as Citizens and Family Members as well as Consumers -- The Prisoner's Dilemma -- Meta-Externalities -- Rethinking Incentives -- Summary: "If You Have a Hammer . . ." -- Threads -- Gender Thread -- Environmental Thread -- Distributional Thread -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 5. Reintroducing Supply and Demand: A Heterodox Micro Foundation for Macroeconomics -- Introduction -- Disequilibrium Critiques -- The Logic of Equilibrium Models -- The Logic of Disequilibrium Models -- Integrating Equilibrium and Disequilibrium Dynamics: The Auctioneer and the Casino Metaphors -- Heterodox Critiques of Textbook Demand and Supply Curves -- Conclusion -- In Their Own Words -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 6. From Micro to Macro Analysis: Heterodox Critiques of the Initial Macro Chapters in Principles Texts -- Introduction -- Keynes and the History of Macroeconomics -- Macro-Micro Distinction -- Fallacy of Composition -- Micro Foundations for Macro Theory or Macro Foundations for Micro Theory?.

Levels of Aggregation -- Topics and Concerns for Macroeconomics -- The Confusing World of Aggregate Supply and Aggregate Demand: Two Curves in Search of a Theory -- Conclusion -- In Their Own Words -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 7. Remeasuring Economic Activity: Heterodox Critiques of GDP Accounting -- Introduction -- GDP: The Textbooks' Yardstick -- Inadequacies of GDP as a Measure of Economic Well-Being -- Overview -- Neglect of Nonmarket Activities -- Neglect of Positional Competition -- Neglect of "Bads" and Increasing Intermediate Goods Requirements -- Neglect of Depletion of "Natural Capital" and Other Problems with Capital Accounting -- Neglect of Distributional Issues -- Neglect of Changes in the Quality of Work Life -- Neglect of Meta-Externalities -- Neoclassical Responses to Heterodox Concerns: "Déjà Vu All Over Again": The "Note but Ignore" Motif -- Heterodox Rebuttals -- Novel Difficulties or Topical Disinterest -- Threshold Effects: Disabling Old Correlations -- Alternative Indicators of Economic Performance -- Conclusion -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 8. Remeasuring Economic Activity: Labor Market and Inflation Statistics -- Introduction -- The Costs of Unemployment -- Overview -- The Cost of Lost Income to Working Families -- Psychological and Sociological Impacts of Unemployment -- Unemployment and Social Inequality -- Implications of the Costs of Unemployment -- Price Indices -- Conceptual Debates -- Recent Debates -- Threads -- Environmental Issues -- Gender Issues -- Distributional Issues -- Conclusion: The "So What" Question -- Policy Implications -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 9. Reintroducing Aggregate Demand -- Introduction -- Reencountering Keynes -- Keynes's Life.

Keynesian Doubts of Full-Employment Guarantees -- Keynesian Policy Implications -- Intermission: A Break for Discussion -- Erosion of Keynesian Theory -- The Keynesian Cross -- The Purpose of the Keynesian Cross -- The Road Ahead -- Textbook and Heterodox Discussions of Consumption -- Overview -- Neglect of the Social Dimension of Consumer Demand -- Subtexts and Subjects -- Isolated or Social Consumers: Alternative Consumption Functions -- The Savings Function -- Insufficient Attention to Business Savings -- Insufficient Attention to Institutional Factors -- Insufficient Attention to Suboptimal Behaviors -- Insufficient Attention to Distributional Issues -- Investment -- Impact of Uncertainty and Expectations -- Savings, Consumption, and Investment Relations in a Demand-Constrained Economy -- Neglect of Institutional Phenomena -- Case Study: Investment Strategies in the "New" and "Old" Economies -- Threads -- Distributional Issues -- Gender Issues -- Environmental Issues -- Competing Metaphors and Stories -- Conclusion -- In Their Own Words -- On Paradigms in Macroeconomics -- On Investment-Led Savings -- On the Nature of Consumer Behavior -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 10. Reintroducing Money: Basic Concepts -- Introduction and Overview -- The Implications of Uncertainty -- "Like Hamlet Without the Prince" -- Heterodox Focus on Liquidity -- Reconceptualizing Money Demand and Money Supply -- Bankruptcy and Disequilibrium Dynamics -- The "Monetized" Nature of a Capitalist Economy -- (C-M-C') Versus (M-C-C'-M') -- Credit -- The Complicated Relationship Between Savings and Investment -- Beyond Homo Economicus -- Institutions and "Misplaced Concreteness" -- Distributional Issues -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 11. Applications of Heterodox Monetary Theory.

Introduction -- Financial Markets -- Introduction -- Sample Financial Crises -- The Generic Crisis -- Explaining Financial Crises -- Sample Heterodox Analyses of Financial Markets -- The Fed -- Technocratic or Political Policy Making? -- Functional Role of Unemployment -- Interest Group Politics -- Policy Implications -- Monetary Policy -- Financial Markets Policy -- Industrial Policy -- Threads -- Distributional Threads -- Gender Threads -- Environmental Threads -- Competing Stories and Metaphors -- In Their Own Words -- Study Questions -- Discussion Questions -- Review Questions -- Notes -- 12. Reintroducing Aggregate Supply and Aggregate Demand -- Introduction: Two Curves in Search of a Theory -- Review of Standard Textbook Treatments of AS-AD -- Derivation of the Aggregate Demand Curve -- Derivation of the Aggregate Supply Curve -- Using the AS-AD Framework -- Overview of Heterodox Critiques of the AS-AD Framework -- Heterodox Critiques of Textbook AD Curves -- Introduction -- Interest Rate Effects -- "Wealth Effects" -- Trade and Other Effects -- Graphing Heterodox AD Curves -- Keynesian and Other Heterodox Critiques of Textbook AS Curves -- Introduction -- The Implicit Supply Curve of the Keynesian Cross -- The Implications of the Large Corporation -- The Labor Market -- Gaps and Overlaps Between Textbook and Heterodox Theory -- Policy Implications -- Introduction -- Need for Government Demand Management During Economic Downturns -- Need for Government Policy During Economic Expansions -- Conclusion -- Study Questions -- Review Questions -- Discussion Questions -- Notes -- 13. Heterodox Alternatives to the AS-AD Framework -- Introduction -- Circuits of Capital Approach -- Social Structures of Accumulation (SSA) -- Introduction -- The Postwar SSA -- Consolidation of the Neoliberal SSA.

Comparing the AS-AD and SSA Frameworks for Analyzing Macroeconomic Events.