Epistemology is the branch of philosophy concerned with knowledge. Epistemologists study the nature, origin, and scope of knowledge, epistemic justification, the rationality of belief, and various related issues. Debates in contemporary epistemology are generally clustered around four core areas:
Rational choice theory refers to a set of guidelines that help understand economic and social behaviour. The theory originated in the eighteenth century and can be traced back to the political economist and philosopher Adam Smith. The theory postulates that an individual will perform a cost–benefit analysis to determine whether an option is right for them. It also suggests that an individual's self-driven rational actions will help better the overall economy. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand.
Social epistemology refers to a broad set of approaches that can be taken in epistemology that construes human knowledge as a collective achievement. Another way of characterizing social epistemology is as the evaluation of the social dimensions of knowledge or information.
An economic bubble is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be caused by overly optimistic projections about the scale and sustainability of growth, and/or by the belief that intrinsic valuation is no longer relevant when making an investment. They have appeared in most asset classes, including equities, commodities, real estate, and even esoteric assets. Bubbles usually form as a result of either excess liquidity in markets, and/or changed investor psychology. Large multi-asset bubbles, are attributed to central banking liquidity.
Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example:
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
Behavioral economics is the study of the psychological, cognitive, emotional, cultural and social factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by classical economic theory.
Performativity is the concept that language can function as a form of social action and have the effect of change. The concept has multiple applications in diverse fields such as anthropology, social and cultural geography, economics, gender studies, law, linguistics, performance studies, history, management studies and philosophy.
Philosophy and economics studies topics such as public economics, behavioural economics, rationality, justice, history of economic thought, rational choice, the appraisal of economic outcomes, institutions and processes, the status of highly idealized economic models, the ontology of economic phenomena and the possibilities of acquiring knowledge of them.
Experimental philosophy is an emerging field of philosophical inquiry that makes use of empirical data—often gathered through surveys which probe the intuitions of ordinary people—in order to inform research on philosophical questions. This use of empirical data is widely seen as opposed to a philosophical methodology that relies mainly on a priori justification, sometimes called "armchair" philosophy, by experimental philosophers. Experimental philosophy initially began by focusing on philosophical questions related to intentional action, the putative conflict between free will and determinism, and causal vs. descriptive theories of linguistic reference. However, experimental philosophy has continued to expand to new areas of research.
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy.
Metaepistemology is the branch of epistemology and metaphilosophy that studies the underlying assumptions made in debates in epistemology, including those concerning the existence and authority of epistemic facts and reasons, the nature and aim of epistemology, and the methodology of epistemology.
In epistemology, and more specifically, the sociology of knowledge, reflexivity refers to circular relationships between cause and effect, especially as embedded in human belief structures. A reflexive relationship is multi-directional when the causes and the effects affect the reflexive agent in a layered or complex sociological relationship. The complexity of this relationship can be furthered when epistemology includes religion.
George Soros is a Hungarian-American billionaire hedge fund manager and philanthropist. As of October 2023, he had a net worth of US$6.7 billion, having donated more than $32 billion to the Open Society Foundations, of which $15 billion has already been distributed, representing 64% of his original fortune. Forbes called Soros the "most generous giver". He is a resident of New York.
Feminist epistemology is an examination of epistemology from a feminist standpoint.
In finance, momentum is the empirically observed tendency for rising asset prices or securities return to rise further, and falling prices to keep falling. For instance, it was shown that stocks with strong past performance continue to outperform stocks with poor past performance in the next period with an average excess return of about 1% per month. Momentum signals have been used by financial analysts in their buy and sell recommendations.
There have been many criticisms of econometrics' usefulness as a discipline and perceived widespread methodological shortcomings in econometric modelling practices.
Decolonization of knowledge is a concept advanced in decolonial scholarship that critiques the perceived hegemony of Western knowledge systems. It seeks to construct and legitimize other knowledge systems by exploring alternative epistemologies, ontologies and methodologies. It is also an intellectual project that aims to "disinfect" academic activities that are believed to have little connection with the objective pursuit of knowledge and truth. The presumption is that if curricula, theories, and knowledge are colonized, it means they have been partly influenced by political, economic, social and cultural considerations. The decolonial knowledge perspective covers a wide variety of subjects including philosophy, science, history of science, and other fundamental categories in social science.
Masudul Alam Choudhury is a Bangladeshi-Canadian economist and International Chair in Islamic Economics and Finance at the Faculty of Economics, Trisakti University in Jakarta, Indonesia.
Foundations of Real-World Economics: What Every Economics Student Needs to Know is a 2019 book by John Komlos in which the author argues that the turbulence of the 21st century, including the Dot-Com bubble, the 2008 financial crisis, the rise of right-wing populism, covid-pandemic, and numerous wars, cannot be adequately understood with conventional 20th-century economic thinking.
