How Deep is the Crisis of Neo-Classical Political Economy?

Abstract

The paper aims to explain how deep the ongoing crisis of neoclassical political economy – NCPE is and if this crisis can be overcome through an inside-out change. For this purpose, the paper first investigates the roots of this crisis across the NCPE’s epistemological, economic, and political axioms at the level of theory. The paper then analyses the practical implications of this theoretical investigation with reference the US model of political economy, including a comparative account of this model with the German model in terms of the commonality or variety of the NCPE’s impact on liberal and illiberal countries. The paper concludes that the NCPE’s ongoing crisis is an epistemological and systemic one emanating out of its flawed theoretico-practical pillars and that this crisis cannot be overcome through an inside-out change due to the inter-blocking dynamics of these pillars.