Boettke, The Austrian School and the Reclamation of Reality in Modern Economics

In a series of recent papers, the prominent Austrian economist Peter Boettke has criticised orthodox economics for its lack of realism. This paper situates Boettke’s critique in the context provided by recent developments in the methodology of economics, most notably critical realism. While there is a good deal of common ground between Boettke’s approach and critical realism, the latter also helps to reveal some of the limitations of the variant of Austrian economics to which Boettke subscribes. Suggestions are made as to how critical realists and Austrians such as Boettke might move forward together in developing a more realistic, relevant and fruitful approach to economic analysis.