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An economic ideology is a set of views forming the basis of an ideology on how the economy should run. It differentiates itself from economic theory in being normative rather than just explanatory in its approach, whereas the aim of economic theories is to create accurate explanatory models to describe how an economy currently functions. However, the two are closely interrelated, as underlying economic ideology influences the methodology and theory employed in analysis. The diverse ideology and methodology of the 74 Nobel laureates in economics speaks to such interrelation.[1]
A good way of discerning whether an ideology can be classified an economic ideology is to ask if it inherently takes a specific and detailed economic standpoint.
Furthermore, economic ideology is distinct from an economic system that it supports, such as capitalism, to the extent that explaining an economic system (positive economics) is distinct from advocating it (normative economics).[2] The theory of economic ideology explains its occurrence, evolution, and relation to an economy.[3][4]
- ^ "Ideological Profiles of the Economic Laureates". Econ Journal Watch. 10 (3): 255–682. 2013.
- ^ Klappholz, Kurt (1987). "ideology". The New Palgrave: A Dictionary of Economics. 2: 716.
- ^ Roland Bénabou, 2008. "Ideology," Journal of the European Economic Association, 6(2–3), pp. 321–52 Archived 2010-06-12 at the Wayback Machine.
- ^ Joseph P. Kalt and Mark A. Zupan, 1984. "Capture and Ideology in the Economic Theory of Politics," American Economic Review, 74(3), pp. 279–300. Reprinted in C. Grafton and A. Permaloff, ed., 2005 The Behavioral Study of Political Ideology and Public Policy Formation, ch. 4, pp. 65–104.