In the first part, and on the general level, the article defends the methodological dualism of rationalism against much more fashionable methodological monism of empiricism-positivism, and shows why the latter must be considered self-contradictory and thus fallacious.
In the second part, applying the rationalist position in the field of economics, it shows that economics, its subject of inquiry being action of man, should use a deductive method to arrive at apodictically true propositions. Since, on the contrary, the current mainstream economics uses almost exclusively (but fallaciously) the positivist (inductive) method, the article evaluates the negative consequences of doing so upon the fields of both theoretical economics and economic policy.