Structuralism in Modern Business-Cycle Theory: A Framework for a Structuralist Reconceptualization
The Center for the History of Political Economy Working Paper Series, CHOPE Working Paper No. 2017-12
16 Pages Posted: 10 Aug 2017
Date Written: July 27, 2017
In this tiny paper, a possible framework for a structuralist analysis of modern business-cycle theory is considered. In order to respond to the debates around the realist and instrumentalist interpretations of the works of Friedman I will provide a framework in which the tension between the opposite standpoints can be overcome. Based on epistemic structural realism, firstly, I will identify Friedman’s stance as a mix of agent-level instrumentalism and macro-level causal realism and, secondly, I will scrutinize the consistency of this epistemic strategy. I will argue that causal realism requires one to be realist regarding the assumptions defining agents as well.
Keywords: structural realism, entity realism, business-cycle theory, unrealistic assumptions
JEL Classification: B22, B41
Suggested Citation: Suggested Citation