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The economic crisis is forcing us to revise many of the tenets of neoclassical economic theory. Gradually, 'mainstream economics' is being fleshed out with several elements of economic heterodoxy. Hence, much more so than previously, economic theories are 'absorbing' the findings of other social sciences. Revision in the area of theory has hitherto had little impact on economic policy. Indeed, when something new appears, such as 'new industrial policy' for instance, it is usually an attempt to breathe life into old concepts that have been abandoned in practice. The aim of this paper is to consider the foundations of economic policy in the context of current theoretical research and current economic challenges.
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