Structuralism in modern business-cycle theory
A framework for a structuralist reconceptualization
Abstract: In this tiny paper, a possible framework for a structuralist analysis of modern
business-cycle theory is considered. In order to respond to the debates around the realist and instrumentalist interpretations of the works of Friedman I will provide a framework in which the tension between the opposite standpoints can be overcome. Based on epistemic structural realism, firstly, I will identify Friedman’s stance as a mix of agent-level instrumentalism and macro-level causal realism and, secondly, I will scrutinize the consistency of this epistemic strategy. I will argue that causal realism requires one to be realist regarding the assumptions defining agents as well.
Keywords: structural realism, entity realism, business-cycle theory, unrealistic assumptions
JEL codes: B22, B41
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