'No reality please. We're economists'. There is an increasingly widespread belief, both within and outside the discipline, that modern economics is irrelevant to the understanding of the real world. In Economics and Reality, Tony Lawson traces this irrelevance to the failure of economists to match their methods with their subject. Formal, mathematical models are shown to be quite unsuitable to the social realities economists purport to address. If these could be replaced by more appropriate methods, economics might overcome some of its current, self imposed limitations. The book is divided into five parts: * Part One lays out the central argument of the book, explaining the reasons for modern economics shortcomings and outlining the realist alternative * Part Two examines the various ways in which mainstream economics is rooted in positivist philosophy and examines the problems this causes * Part Three focuses on human agency, social structure and their interaction * Part Four explores how the understanding of social phenomena offered in part three might be used to transform the nature of economic practice * Part Five concludes by showing how this newly transformed economics might set about shaping economic policy Although informed by philosophy, Economics and Reality is rooted throughout in the problems, practices and writings of economists. Exploring the current state, possibilities and limits of economics, the book will be of interest to all economists concerned with the current state of their discipline. Part 1: Science and Economics 1. Enduring Tensions as points of departure, 2. Realism, Explanation and Science, 3. The Case for Transcendental Realism, 4. The Legacy of Positivism, 5. The Nature of t