The Institute

The Institute for New Economic Thinking was created to broaden and accelerate the development of new economic thinking that can lead to solutions for the great challenges of the 21st century.

The havoc wrought by our recent global financial crisis has vividly demonstrated the deficiencies in our outdated current economic theories, and shown the need for new economic thinking – right now.

INET is supporting this fundamental shift in economic thinking through research funding, community building, and spreading the word about the need for change. We already are a global community of thousands of new economic thinkers, ranging from Nobel Prize winning economists to teachers and students who have emerged out from the shadows of prevailing economic thought, attracted by the promise of a free and open economic discourse.

We are constantly devising ways to support the next generation of economics scholars, by providing money, advice, access to like-minded individuals and new outlets for their ideas, including the widespread use of web video and social media.

My Content

Ever since 2008, increasing numbers of economists, students, and even market professionals have protested the way economics is currently taught and practiced. By now the revolt is close to a worldwide phenomenon. The discussion thus far has centered mostly on textbooks, pedagogic procedures, and what might be termed the broad “ecology” of the profession of economics, which frequently seems too close to the markets it purports to study for critical perspectives to emerge.
Vince Cable, Andy Haldane and Adair Turner are among the keynote speakers at a major international conference challenging conventional thinking about the role of the state in driving the innovation needed for sustainable, inclusive growth.
The global student movement to transform the economics curriculum received some unexpected high-level support this week from Benoit Coeure, a member of the Executive Board of the Europen Central Bank. In remarks Tuesday at a panel discussion held by the ECB’s Macro-Prudential Network, Coeure said, “The typical economics curriculum tends to emphasize the frictionless benchmark more than the realistic variants. Shifting the academic focus to a world with frictions would have a welcome impact on teaching, allowing central banks to hire from a pool of young economists better equipped with methods and tools to address policy challenges.”
Thomas Piketty’s Capital in the 21st Century has spurred an intense debate over the macroeconomic causes of income and wealth inequality. Meanwhile, a growing amount of research suggests that inequality itself is an important cause of macroeconomic instability. In the short interview with Deutsche Welle, Institute grantee Till van Treeck explains how inequality can contribute to macroeconomic instability.

My Video Content

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About the Interview

If you want to understand how fund managers choose a portfolio, why not ask them? That’s what David Tuckett does: he draws on standard sociological techniques of interviewing to understand investors’ decisions to buy or sell assets. He says financial markets cannot be driven by economic fundamentals – because the future is uncertain – instead, they are driven by stories about fundamentals. David Tuckett merges insights from Keynes, from sociology, and from psychoanalysis to develop what he calls emotional finance – this is new economic thinking.