Ideas and interests, economic policy and institutions

In recent years an approach has appeared in economic policy analysis, the followers of which try to argue that ideas not only matter but cause economic policies and economic institutions change, and after all cause change in economies: an ideational approach. The purpose of the paper is to analyze the approach's argumentations, estimate its validity, reveal strengths and weaknesses. Whereas this approach embraces many different aspects of economic processes, this paper turns attention to only two issues: ideas' influence on policies and policies change, and the role of ideas in institutional change.