The irreductibility of macro to microeconomics: a methodological approach
Brazilian Journal of Political Economy, Vol. 16 No. 2 (1996), Apr-Jun / 1996, Pages 175-201
This paper criticizes the idea, widespread today, of the need to seek microfoundations
for macroeconomics. The authors argue that these two fields of economics,
micro and macroeconomics, use different methodological approaches. Microeconomics
deals with economic problems according to a logical-deductive methodology, while
macroeconomics is more characterized by a historical-inductive approach. The attempt to
reduce macroeconomics to microeconomics, or vice versa, brings only an impoverishment to
science and economic debate, in which, ideally, there should be room for a great pluralism
of ideas and theoretical currents.
JEL Classification: B41; E10.
Keywords: Economic methodology microfoundations of macroeconomics