The method in economics: can it generate myths?

Discussions of method are never purely abstract. As the two examplesexamined below illustrate, methodological choices correspond to ideological orientations that lead to distinct and often significant economic policy implications. The point of departure, therefore, must be a rejection of those abstractions or theories presumed valid in all times and circumstances. Economics, as this paper argues, should be understood as a historical science, shaped by contingent and concrete realities. Following Karl Popper, any legitimate abstraction must rest on a firm empirical and historical foundation. Without such grounding, economics risks constructing myths – conceptual edifices devoid of real-world substance – upon which no sound policy or science can stand.