The Financial and Economic Crisis and the Aberrance of Economics
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The Financial and Economic Crisis and the Aberrance of Economics
Credit and Capital Markets – Kredit und Kapital, Vol. 46 (2013), Iss. 2 : pp. 233–246
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Dr. Thorsten Polleit, Frankfurt School of Finance & Management, Sonnemannstraße 9 – 11, 60314 Frankfurt am Main.
Abstract
Positivism-empiricism-falsificationism has become the ’state-of-the-art" methodology of economics. In this article it will be argued that this approach (1) suffers from (logical) deficiencies when applied to the science of human action and (2) has helped legitimizing, and putting into practice, policies that have actually contributed greatly to bringing about the latest financial and economic crisis. The ’Austrian", or to be more precise: the ’Misesian", method (praxeology) will be outlined as the proper methodology in the field of social science. (A2, B20, B41, B50, B53, C10)