ABSTRACT
This chapter examines how the methodology of Conventionalism is implemented in mainstream neoclassical economics to avoid questions of realism in economic model building. Rules characterize mainstream Conventionalism which can be divided into two separate currents. One moves under the overt banner of ‘positive economics’, although not too many years ago it was merely called ‘applied economics’. The other moves under the pretentious title of ‘economic theory’, although it is merely what was called ‘mathematical economics’ forty years ago. Their differences are essentially analogous to the differences between optimistic Conventionalism and defeatist Conventionalism. In recent years, mathematical tools of a more basic character have been introduced into economics, which permit us to perceive with greater clarity and express in simpler terms the logical structure of important parts of economic theory. One of the consequences of the admirable show of self-reliance is that many of the stated economic theorems and propositions for which proofs are published yield trivial results.
