Financial crisis of metaphor |
| |
Authors: | Peter J Phillips |
| |
Institution: | (1) School of Accounting, Economics and Finance, University of Southern Queensland, Toowoomba, Queensland, 4350, Australia |
| |
Abstract: | This paper presents an analysis of the mathematical models of the prevailing orthodoxy within the field of financial economics
in light of the financial crisis. The financial crisis presents a challenge to the language of orthodox financial economics.
From an Austrian perspective, this challenge to the language of orthodox financial economics is centred on a small number
of pressure points stemming from the mathematical-quantitative nature of the prevailing orthodoxy, especially the distortion
of or obstruction to the communication of pertinent ‘knowledge’ by the adoption of a formalism that pushes aside many of the
most important aspects of the human action represented in financial markets. The result is a crystalline structure of mathematical
models that suffer from serious salience imbalance. The highly salient features of mathematical objects are not directly applicable
to and have a low salience in the list of features of the financial economic reality. The financial crisis has accentuated
this salience imbalance. The orthodoxy has experienced a financial crisis of metaphor. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|