ABSTRACT
This chapter examines how the current hidden agenda is manifested in the methodology of current research programs of neoclassical economics. It begins with the pervasive ideal-type methodology. Ideal-type methodology was not openly and enthusiastically promoted in economics until the 1950s after a major promotion of formal mathematical model building was commenced. Those economists who are only interested in developing theoretical models without regard to policy applications will not be seen to be promoting ideal-type-methodology. Milton Friedman's self-conscious methodology is now famous for being an explicit form of Instrumentalism. Economists usually characterize Instrumentalism as the ‘as-if methodology’ but too often confuse Instrumentalism with the sequence-of-models version of Conventionalism. The problem with Friedman’s Instrumentalism is that its proponents willingly stop with the initial ideal-type assumption. The notion of calibration is an artifact of engineering physics methodology in particular and ideal-type methodology in general.
