Kuhn Versus Lakatos, or Paradigms Versus Research Programmes in the History of Economics

In the 1950's and 1960's economists learned their methodology from Popper. Not that many of them read Popper. Instead, they read Friedman, and perhaps few of them realized that Friedman is simply Popper-with-a-twist applied to economics. To be sure, Friedman was criticized, but the "Essay on the Methodology of Positive Economics" nevertheless survived to become the one article on methodology that virtually every economist has read at some stage in his career. The idea that unrealistic "assumptions" are nothing to worry about, provided that the theory deduced from them culminates in falsifiable predictions, carried conviction to economists long inclined by habit and tradition to take a purely instrumentalist view of their subject.