Methodology is where Austrian economists differ most significantly from other schools of economic thought. Mainstream schools such as Keynesians and Monetarists adopt empirical, mathematical, and statistical methods, and focus on induction to construct and test theories. Austrian economists reject empirical statistical methods […]
You got a long way to go, my friend.
Perhaps you should start your journey by asking your scientist parents what falsifiable means.[/quote]
In Austrians defense – they don’t like the econometrics that mainstream economists use. Which they are correct, IMO. Econometrics is monetarists way of trying to make economics more science-y.
This quote from an anti-capitalist that, I believe, sums up how Austrians feel abut econometrics
Economics is largely a self-fulfilling psychology. It effectively constructs a model of behaviour, to a model for behaviour; whereby such models educate us to think how we’re ‘supposed’ to think. As a result, this pseudo-science has maintained a heavy reliance upon seeking numerical legitimacy and mathematical reassurance for justifying assumptions of rationality.
