The end of an illusion
Mainstream economics must be conceived of as a sort of ‘dangerous’ knowledge – because its models (like the idea of efficient markets) offer no explanation for the regularity of crises and crashes in financial markets in the last decades;...
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2015-01-01
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| Series: | Finance and Society |
| Online Access: | https://www.cambridge.org/core/product/identifier/S2059599900000145/type/journal_article |
| _version_ | 1827313513158148096 |
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| author | Joseph Vogl |
| author_facet | Joseph Vogl |
| author_sort | Joseph Vogl |
| collection | DOAJ |
| description | Mainstream economics must be conceived of as a sort of ‘dangerous’ knowledge –
because its models (like the idea of efficient markets) offer no explanation for
the regularity of crises and crashes in financial markets in the last decades;
and because these models were also employed in the implementation and
justification of these very markets. Just as the Lisbon earthquake of 1755 once
shook modern theodicy to its foundations, so the financial tremors of the last
twenty years threaten to undermine the scientific status of economic theory.
What is at issue is nothing less than the validity, possibility, and tenability
of a liberal or capitalist oikodicy, a theodicy of the economic universe. It is
likely that we are dealing here with one of the greatest and most fatal of
errors of modern economics. |
| first_indexed | 2024-04-24T22:11:08Z |
| format | Article |
| id | doaj.art-0ce8fae93fef48b1b7da269808412f36 |
| institution | Directory Open Access Journal |
| issn | 2059-5999 |
| language | English |
| last_indexed | 2024-04-24T22:11:08Z |
| publishDate | 2015-01-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Finance and Society |
| spelling | doaj.art-0ce8fae93fef48b1b7da269808412f362024-03-20T08:20:17ZengCambridge University PressFinance and Society2059-59992015-01-011384110.2218/finsoc.v1i2.1386The end of an illusionJoseph Vogl0Humboldt University of Berlin, Germany/Princeton University, USAMainstream economics must be conceived of as a sort of ‘dangerous’ knowledge – because its models (like the idea of efficient markets) offer no explanation for the regularity of crises and crashes in financial markets in the last decades; and because these models were also employed in the implementation and justification of these very markets. Just as the Lisbon earthquake of 1755 once shook modern theodicy to its foundations, so the financial tremors of the last twenty years threaten to undermine the scientific status of economic theory. What is at issue is nothing less than the validity, possibility, and tenability of a liberal or capitalist oikodicy, a theodicy of the economic universe. It is likely that we are dealing here with one of the greatest and most fatal of errors of modern economics.https://www.cambridge.org/core/product/identifier/S2059599900000145/type/journal_article |
| spellingShingle | Joseph Vogl The end of an illusion Finance and Society |
| title | The end of an illusion |
| title_full | The end of an illusion |
| title_fullStr | The end of an illusion |
| title_full_unstemmed | The end of an illusion |
| title_short | The end of an illusion |
| title_sort | end of an illusion |
| url | https://www.cambridge.org/core/product/identifier/S2059599900000145/type/journal_article |
| work_keys_str_mv | AT josephvogl theendofanillusion AT josephvogl endofanillusion |