critical realism

Critical realism is a philosophical stance that asserts the existence of a mind-independent reality, but acknowledges that our understanding of it is fallible and incomplete. In economics, this perspective is often associated with critiques of mainstream approaches, suggesting that economic theories should not be seen as mere instruments for prediction but as attempts to describe underlying realities.12

Radical critiques of economics, emerging in the late 1960s, argued that the discipline had become too conservative and defended the status quo. These critics believed economics should address societal issues like poverty and inequality, even if it meant sacrificing some analytical rigor. Critical realists, therefore, advocate for an economics that is both scientifically rigorous and socially relevant, acknowledging the limitations of our knowledge while striving for objective truth about economic phenomena.21