Economic Methodology

Economic methodology refers to the study of how economic knowledge is created, analyzed, and validated. It examines the assumptions, models, and methods economists use to understand complex economic phenomena. In the context of the philosophy of economics, it explores the ethical implications, the role of theories, and the limits of economic predictions. By scrutinizing the tools and frameworks economists employ—such as mathematics, experiments, and case studies—economic methodology helps clarify how we interpret economic behavior and policy, ultimately guiding better decision-making in societal and economic issues.