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Purpose

The purpose of this paper is to emphasise the necessity of grounding economics in an ethical foundation. This study argues that economics, understood as a moral science, requires ethical anchoring and cannot be meaningfully pursued in its absence.

Design/methodology/approach

This study offers a critical examination of modern mainstream macroeconomics. This paper proposes that, beyond theoretical and empirical concerns, mainstream macroeconomics should also be scrutinised in terms of its neglect of ethical considerations, norms and values.

Findings

This study finds that modern mainstream macroeconomics, with its strong emphasis on formal mathematical modelling, has increasingly transformed into a form of applied mathematics. This narrow methodological focus is ill-suited to capture the full complexity of economic reality. Instead of preserving the monistic framework typified by Dynamic Stochastic General Equilibrium models, macroeconomics should adopt a more pluralistic methodological orientation – one better equipped to address the normative and multifaceted nature of economic life.

Research limitations/implications

The dominant position taken today of the modern macroeconomic mainstream must be challenged.

Practical implications

Economics needs to taught using a multi-paradigmatic approach applying a teaching strategy of discovery- and problem-based learning.

Social implications

A reformed kind of macroeconomics is needed that is more capable of addressing (explain, analyse and solve) problems from real life the right way.

Originality/value

Drawing on John Maynard Keynes’s enduring insight that economics is fundamentally a moral science, this paper argues that macroeconomics must take into consideration that economic behaviour is shaped by ethical considerations, social norms and cultural values. The inherently normative nature of economic life necessitates an ethically informed approach to macroeconomic inquiry. Furthermore, while mainstream economic pedagogy emphasises exam-focused content reproduction, heterodox teaching promotes critical engagement through discovery- and problem-based learning – methods better suited to capturing the complexity of real-world economic dynamics.

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