The principle that theories should be tested by the accuracy of their predictions but not by the realism of their assumptions needs to be qualified. As a practical matter we often need to evaluate the applicability of theories to cases for which they have not been tested by their predictions....

Why was the Fed so inflationary in 1965-79? No single explanation suffices. Forecast errors and poor operating procedures played at most a minor role. Unwillingness to accept greater interest-rate variation and cognitive errors played a greater role. Political pressures also played a role, but,...

Before condemning data mining one should distinguish between objective and biased data mining. The former is commendable. Even biased data mining is appropriate when used to illustrate and not to test hypotheses. In the context of testing, the problem with biased data mining arises not from the...

Many of Boettke's criticisms of formalist economics are justified. However, he defines it so broadly that it becomes practically synonymous with mainstream economics. Yet he blames it for the specific sins of formalist economics more narrowly defined. And since he treats Austrian economics as...