Critiques of orthodox economics have proliferated in recent times, but often these critiques are not translated into alternative principles for policy-making. The Centre for Policy Development's 'Real World Economics' program provides a platform for our fellows and others to explore approaches which move beyond the ‘small government vs big government' debate and provide the basis for consistent policy-making across portfolios.

Much of the thinking that informs current government policy is based on outdated or oversimplified economic theory — recent applied research (for example in behavioural economics) is often not taken into account. We need to incorporate a broader, more balanced understanding of human nature into the economic principles that underpin policy development.