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Methodenstreit 2013? Historical Perspective on the Contemporary Debate Over How to Reform Economics

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  • Peter M. Spiegler
  • William Milberg

Abstract

The general failure of economists to predict the financial crash of 2008 has given rise to a wide-ranging debate over the need for methodological reform. But has this debate been adequate to the task at hand? We introduce a framework for classifying methodological debates according to their scope. The scope of debate is especially important in a time of economic crisis, when it is unclear what kind of disciplinary reforms are needed. We find that the current debate is confined largely to the methodological level, taking the incumbent ontology and epistemology as given. We contrast the current debate with two other moments of internal questioning in economics--the Methodenstreit of the 1880s and Keynes' innovations of the 1930s. These were more fundamental, ontological debates, and the contrast with the current debate indicates that reform in economics is likely to be minimal and slow in the wake of the crisis.

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  • Peter M. Spiegler & William Milberg, 2013. "Methodenstreit 2013? Historical Perspective on the Contemporary Debate Over How to Reform Economics," Forum for Social Economics, Taylor & Francis Journals, vol. 42(4), pages 311-345, November.
    • Handle: RePEc:taf:fosoec:v:42:y:2013:i:4:p:311-345
    DOI: 10.1080/07360932.2013.814089
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    1. Teresa Ghilarducci & Zachary Knauss & Richard McGahey & William Milberg & Drew Landes & Edward Nilaj, 2021. "The Future of Heterodox Economics," SCEPA working paper series. 2021-01, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    2. Gabriela Przeslawska, 2016. "Rethinking economics in response to current crisis phenomena," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 15(1), pages 133-146, March.
    3. Zoya Mladenova, 2017. "Reflections of the Global Crisis 2008-2009 upon Economic Theory: Attempt for Generalization," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-40.
    4. Steve J. Bickley & Benno Torgler, 2021. "Behavioural Economics, What Have we Missed? Exploring “Classical” Behavioural Economics Roots in AI, Cognitive Psychology, and Complexity Theory," CREMA Working Paper Series 2021-21, Center for Research in Economics, Management and the Arts (CREMA).

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