ABSTRACT
Owing to scientific overspecialisation of economics in present days, modern economic theory considers economic system as a closed system amenable to methods of hard sciences. This often ignores any discourse on methodological aspects of economics. Purpose: This paper aims to add to the methodological discourse in economics by delineating Adolph Lowe s political economics and its method of instrumental inference. It is argued that Lowe s political economics provides a logical framework for public policy in the era of modern capitalism, giving economics a goal-seeking orientation. Approach: The essay first brings out the epistemological foundations of Lowe s political economics and explains the need for a new method in the era of modern capitalism. It then critically analyses the method of instrumental inference with a proposed application in contemporary national planning. Practical implications: The paper argues that the framework of instrumental inference is a plausible open system framework for public policy and can also be useful in designing policy processes. This becomes more relevant in recent days as development planning has gained pace and the number of countries with development plans has increased greatly especially in pursuit of Sustainable Development Goals (SDGs). With a revived global interest in planning, a reliable framework to look at local and national planning may be the framework of political economics propagated by Adolph Lowe.

Keywords: Adolph Lowe, Instrumental Inference, Political Economics, Economic Methodology, Public Policy

JEL classification: B31, B40, O21, P11