Economic Imaginaries, Economics Theories and the Role of Economic Journalism

Economic and social reality is complex, multifaceted and ambiguous. In order to make sense of this reality and act within it, economic actors are dependent on simplified understandings of the lived, day-to-day economic reality. These “economic imaginaries” function as key, but simplified, understandings of economic reality. They are legitimised and supported by powerful ideas and theories about the economy and economic relations originating in the scientific field of economics. It is important to understand that many “common-sense” ideas about economic realities were conceived and developed in this manner. Within academic economics, various schools of thought exist that conceptualise the economy in very distinct terms - some of the most influential ones will be reviewed in this chapter. Neoclassical and market-liberal thinking is one of the most dominant streams within academic economics. These ideas heavily influence what is termed “neoliberalism” - the dominant economic imaginary. This development of economic imaginaries takes place through three key channels: (1) academic economists’ active engagement as commentators and interpreters of economic relations, (2) various economic actors drawing on selected economic theory to advance their preferred understanding of economic relations, and (3) economics textbooks that shape young students’ minds much beyond narrow economics.