MODERN METHODOLOGICAL ISSUES OF THE DESCRIPTION OF FINANCIAL, ECONOMIC AND SOCIAL SYSTEMS IN THE CONTEXT OF “REALISTIC” CRISIS APROACH

Abstract

In the wake of the global financial and economic crisis, the question of methodology has been raised by economists, social scientists, policy makers, the media and within everyday discourse. At least two fundamental issues have arisen: firstly, the justification, if any, for the unrealistic assumptions that have become mainstream in economics and finance, not least the rationality assumption (either perfect rationality or rational expectations) and the efficient market hypothesis; secondly, the issue of theorizing the system as a whole has become prominent because the crisis has made evident the interconnections from the US sub-prime mortgage market to the global economic and social system as a whole.