The Recent Critique of Theoretical Economics: A Methodologically Informed Investigation

Journal of Economic Issues, vol. 50, No. 1, pp. 269-287, 2016

Posted: 11 Apr 2016

See all articles by Lukasz Hardt

Lukasz Hardt

University of Warsaw - Department of Economics and Business

Date Written: April 6, 2016

Abstract

My purpose is to appraise the recent critique of theoretical economics by applying the methodological perspective. Therefore, I start by identifying the main lines of criticism raised against theoretical economics in the aftermath of the post-2008 global economic crisis: namely, the voices criticizing economics for its unrealistic models, excessive mathematization, and overconfidence in its theoretical claims. First, I show that these issues are interconnected and should be jointly analyzed. Next, I investigate these lines of critique from the perspective provided by the latest achievements in the philosophy of economics (e.g., studies on the epistemic role of economic models). Taking this perspective reinforces some allegations against economics (e.g., these voices accusing economists of treating economic laws as universal laws of nature) and makes some criticisms more nuanced (e.g., the issue of unrealistic assumptions). I conclude by stating that such a methodological perspective is necessary in critically apprising the recent critique of economics.

Keywords: critique of economics, economic crisis, mathematization of economics, methodology of economics, models and laws in economics

JEL Classification: A11, A12, B40

Suggested Citation

Hardt, Lukasz, The Recent Critique of Theoretical Economics: A Methodologically Informed Investigation (April 6, 2016). Journal of Economic Issues, vol. 50, No. 1, pp. 269-287, 2016, Available at SSRN: https://ssrn.com/abstract=2760060

Lukasz Hardt (Contact Author)

University of Warsaw - Department of Economics and Business ( email )

Warsaw, 00-241
Poland

HOME PAGE: http://www.wne.uw.edu.pl/lhardt

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