Far from a Nihilistic Crowd : The Theoretical Contribution of Radical Subjectivist Austrian Economics

This paper compares and contrasts the hermeneutic turn advocated by Don Lavoie in this 1985 essay on The Interpretive Dimension of Economics with the ontological turn that was gathering momentum amongst other groups of heterodox economists at about the same time. It is argued that an explicit focus on ontological issues can complement and support the ‘interpretive turn’, most notably by helping to show that the charge of nihilism that are sometimes levelled against Lavoie and his followers is unwarranted. The argument is illustrated by a case study of one of the inspirations of, and contributors to, Lavoie’s project, namely Ludwig Lachmann