Reassessing Contemporary Macroeconomics on Methodological Grounds A Weberian Approach

The Center for the History of Political Economy Working Paper Series, 2016-32

20 Pages Posted: 16 Nov 2016  

Peter Galbács

Budapest Business School

Date Written: November 10, 2016

Abstract

Through this paper I try to join the lively debate around mainstream economics with a view to calling attention to some methodological aspects. It is aimed at outlining an interpretation based on Max Weber’s traditional neoclassical methodology that can help us to find the adequate territory of abstract-idealized mainstream models. Special attention is paid to an assessment of the relationship between models and reality. It is argued here that scrutinizing this relationship should reach beyond the oversimplifying approach of empirical tests. Simultaneously, this assessment gives us a refined set of aspects by the application of which to contemporary macroeconomics some methodological breaks can also be highlighted. These breaches would not have been revealed by a linear narrative.

Keywords: assumptions, realism, instrumentalism, abstraction, idealisation, mainstream economics

JEL Classification: B22, B41, E32

Suggested Citation

Galbács, Peter, Reassessing Contemporary Macroeconomics on Methodological Grounds A Weberian Approach (November 10, 2016). The Center for the History of Political Economy Working Paper Series, 2016-32. Available at SSRN: https://ssrn.com/abstract=2869228 or http://dx.doi.org/10.2139/ssrn.2869228

Péter Galbács (Contact Author)

Budapest Business School ( email )

Buzogány utca 10-12
Budapest, H-1149
Hungary

HOME PAGE: http://www.uni-bge.hu

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