New economic thinking

From an early age, economics is defined by the law of supply and demand. However, the failure to predict or explain financial collapses in the past has raised discussions about the relevance of this conventional economic system in today’s world. International trade, technological advancements and global communication changed the world and increased economic interdependence. Events in one country can lead to far-reaching consequences that directly impact the world economy. In a world where markets are becoming more integrated, to what extent can this law of supply and demand still be considered relevant? As Bill Gates claims “supply and demand is over”. His statement refers to the increasing amount of leading companies that sell intangible products like software and services, which requires a whole different business model. This may demand new forms of economic theory. However, does this mean we can throw the existing idea of supply and demand away completely? How can current business leaders and politicians adapt best to our increasing global and interconnected world? Is there indeed a need for new economic thinking?