Methodenstreit

Methodenstreit (German) is a dispute, argument or controversy over methods; specifically, it was the controversy over the method and epistemological character of economics carried on in the late 80's and early 90s of the nineteenth century between the supporters of the Austrian School of Economics, led by Carl Menger and the proponents of the (German) Historical School, led by Gustav von Schmoller. The Historical School contended that economists could develop new and better social laws from the collection and study of statistics and historical materials. Their thought dominated German universities in the last half of the nineteenth century. This led to the ridicule of "liberal" economics in the universities. It thus assisted the growth of state or socialist planning which in turn paved the way for Nazi ideas.