Abstract
Methodenstreit in Economics. This essay offers an account of the Methodenstreit in economics between first Menger and Schmoller and later Max Weber and again Schmoller. It is argued that, for Schmoller, two issues were central; to use economics (widely conceived) as an instrument for economic policy and notably social policy: and to base the science empirically with all the modern methods available. In contrast, the Austrian position had a different view of economics as a science, seeing it more as a system of ideas, which implies a radically different use of empirical evidence