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Metascience

, Volume 28, Issue 3, pp 527–530 | Cite as

Finance in the land of make-believe

Ekaterina Svetlova: Financial models and society: Villains or scapegoats? Edward Elgar Publishing, 2018, £22/$31 eBook
  • Philip MirowskiEmail author
Book Review

It is rare to encounter a fascinating book on epistemology masquerading as a description of modern finance, but here one is: hence its review in this venue. On the surface, it presents itself as an essay absolving mathematical financial models of any culpability in the late global financial crisis; but I regard this as an evasive bait-and-switch maneuver masking its real agenda, which is to raise the stakes in what is conventionally known as the ‘performativity debate’ within the philosophy of economics.

Put crudely, the notion of performativity boils down to an initial proposition that economists’ models do not ‘describe’ an independent reality, but instead create situations where their prescriptions and predictions come ‘true.’ Early statements of this notion were neither very deep nor much grounded in what economists actually did, but then it got picked up by the field of social studies of finance [SSF], and from there became a favorite of the Sociology of Scientific Knowledge (SSK)...

Notes

References

  1. Boldyrev, I., and E. Svetlova (eds.). 2016. Enacting Dismal Science. London: Palgrave.Google Scholar
  2. Mirowski, P., and E. Nik-Khah. 2017. The Knowledge We Have Lost in Information. Oxford: OUP.CrossRefGoogle Scholar
  3. Mirowski, P., and D. Plehwe (eds.). 2009. The Road from Mont Pelèrin. Harvard: Brighton.Google Scholar
  4. Svetlova, E., and H. van Elst. 2013. How is Non-knowledge Represented in Economic Theory? In Ungewissheit als Herausforderung fur die Ökonomische Theorie, ed. B. Priddat and A. Kaballak. London: Metropolis.Google Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.University of Notre DameNotre DameUSA

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