ABSTRACT
Milton Friedman’s essay ‘The methodology of positive economics’ [1953] is considered authoritative by almost every textbook writer who wishes to discuss the methodology of economics. Nevertheless, virtually all the journal articles that have been written about that essay have been very critical. This is a rather unusual situation. The critics condemn Friedman’s essay, but virtually all the textbooks praise it. Why should honest textbook writers ignore the critics? It will be argued here that the reason is quite clear. Every critic of Friedman’s essay has been wrong. The fundamental reason why all of the critics are wrong is that their criticisms are not based on a clear, correct or even fair understanding of his essay. Friedman simply does not make the mistakes he is accused of making. His methodological position is both logically sound and unambiguously based on a coherent philosophy of science-instrumentalism. In order to defend Friedman from his critics, I shall outline some necessary background knowledge-a clear understanding of the nature of logic and the philosophy of instrumentalism-and then present a reader’s guide to his essay. Based on this background knowledge and the reader’s guide, I shall survey and comment upon the major critics of Friedman’s methodology. I shall conclude with a suggestion as to how a fair criticism would proceed.
