Heterodox Economic Thinking: A New Approach of Economic and Social Problems in Latin America

Abstract

In a general sense, heterodoxy is the negation of dominant thinking. In the particular context of economics, heterodox thinking — also known as critical thinking or radical thinking — is characterized by its opposition to orthodox or traditional thinking. Heterodox economical thinking is heterogeneous, plural and complex; even within, it is possible to observe divergences as to the interpretation of the relationship between finances and “real economy,” the role of the State in the regulation of the financial sector and the comprehension of nature and the reach of global economy in national economies. Thus, in this article it is argued that heterodox economy is the theoretical-conceptual and methodological tool that best allows to analyze Latin America’s intricate reality, since heterodox thinking not only accounts for theory, but it also criticizes reality. In this text, heterodox economical thinking and its divergences are first defined and characterized with orthodox economical thinking; then, the world financial crisis is analyzed from a critical perspective; finally, Latin American reality is studied from a heterodox economic thinking and from the most recent events in world’s economy.