Western mainstream economics paradigm crisis _2487

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Crisis of the Western paradigm of mainstream economics
 
 
For a long time advocate and practice the Western mainstream economics and the United States on the financial crisis affecting the global economy highlights the paradigm of contemporary mainstream Western economics to analyze the importance of its crisis. Crisis of the Western paradigm of mainstream economics reflected in the Crisis of the Western paradigm of mainstream economics, indicates the direction of its further evolution of the conversion.  Keywords: Western mainstream economics; paradigm; Crisis Coalition of Chinese paper finishing.   Paradigm of conventional science which is the theoretical basis and practical operation of norms, is engaged in a scientific researcher groups follow a common outlook and behavior. According to the established usage, paradigm is an accepted model or pattern. Practical activities in science is recognized as an example of some - including law, theory, applications and equipment, including examples of all - there is a tradition of scientific research provides a model.  Economics paradigm crisis is that people within the field of Economics of the theory based on the impact of economic practice and no longer accept or reject at least part of the original co-master of the beliefs, values, assumptions and theorems of the phenomenon. Western classical mainstream economic rehabilitation since the formation of a seemingly strong, unshakable foundation paradigm, and is committed to modeling by means of several physical and chemical and its maintenance and consolidation. But the paradigm of mainstream economics, there are many open to question, it does not change with the times and an overall theory of paradigm shift. Especially since 2007, the U.S. subprime mortgage crisis, conduction, diffusion and zoom in to the background of the global financial crisis, as a country of origin of the crisis and the scourge who has long insisted the United States has advocated and practice of contemporary Western mainstream economics, The theory behind a very deep inspiration and critical significance. This paper focuses on the contemporary Western mainstream economics (hereinafter referred to as mainstream economics) to be the paradigm of crisis resolution, and to predict the further evolution of mainstream economics paradigm direction.   One, marginal analysis, economists have is from this part of the marginal analysis method selected for the construction of its independent paradigm. The marginal utility theory of subjective value as the core of traditional economics, the cost of production of a critical value, while inadvertently also created a true sense of the basic paradigm of modern economics, and has been in use ever since. Marginal Revolution is not no emergence of the modern paradigm of mainstream economics, let alone paradigm crisis. Marginal paradigm than classical economics and Marxist economics may be more explanatory power of economic phenomena, but only economic phenomenon rather than the economic performance reveals the essence of law.  Starting from Adam Smith, economics as a discipline-specific officially separated from philosophy. Philosophy is the whole world the object of study, the purpose is to reveal the world's most essential and most general laws of economics as a discipline-specific research targets are the world's local, the purpose is to reveal the local research subject - the nature of economic phenomena behind . Separated from philosophy as a specific subject, either school or thinking of economics are built on the implicit or explicit basis of a specific philosophy, such as the philosophical basis of Adam Smith is one of the important philosophy of Jeremy Bentham, Marxist economics, philosophy is dialectical materialism and historical materialism.  Different philosophical basis, will inevitably lead to a different world outlook and methodology, which led to the characteristics of different economic paradigm. Bentham and Smith's philosophy is based on subjective idealism, human nature has been attributed to the uniform of the As the anchor of economics paradigm, more humane, and its interpretation is more close to real life in the economic activities of the phenomenon, but one-sided exaggeration of the subjective mental activity decisive role in economic activities, can not see who is the real world developed to a certain stage, the formation of man from the subjective psychological reality, is a response to the real world. People's psychological behavior is in fact in the formation of long-term economic activity is the result of economic activity rather than a cause, exaggerate the psychological impact of activities on economic activity, cause and effect reversed, said help from the fundamental grasp of complex economic phenomena behind nature of economic laws. The philosophical paradigm of endogenous defects in the development paradigm of mainstream economics tends to rigidity in the original paradigm of the simple pursuit of a more normative basis of description, the performance paradigm of economics more and more beautiful, but the nature of the world rules and experience farther away than ever of the model, become a From this perspective, the current number of mainstream economics or engineering physics and chemistry with the inevitable tendency.   Second, the methodology for the formal   method, the standard economic highly abstract, rely heavily on mathematics and deduction ... not diligently care about the system. If a simple theoretical analysis, in a relatively closed, static economy, this analysis will help the complex grasp of abstract economic realities, but also help to build a smooth system of economic theory. The assumption based on the premise of deductive logic and then a conclusion only from the theoretical system itself, this analysis there is no problem, in fact, this is different from other theories of economics paradigm is unique. This originated in the abstract interpretation of Ricardo's original method, which points out the road leading to the modern economic analysis, and produce the final form may be converted to mathematical theorems. But the real world is complex, and real economic activity is complex and dynamic, convenient for the theoretical analysis a priori, arbitrary matter of fact the real existence of economic activities, and an important impact on economic performance by assuming the premise of the factors easily stripped out, artificially changing complex world to simple world, often leads to the assumption of mainstream economics seriously out of line with reality, which infer the conclusion that even science is a  1950 years, the Arrow-Debreu model, represented by axiomatic system, the mainstream neoclassical economics to provide a form of perfect, well-structured mathematical model. Mathematical methods in economics so widespread and universal application of economic theory to achieve argue that mathematics is the only rational approach to economics and integrity to provide scientific methods, experiments and other methods for taking the attitude of indifference or even rejection. Expression and highly sophisticated mathematical modeling techniques has become a fashion in economics, mathematical economics to become and modeling. But the fact is, in reality there are many levels of economic activity, such as Economic reality of the richness, diversity and variability makes the mathematical approximation of a rational method can only reflect reality, mathematical model of the grasp of reality is relative, conditional. While mathematical rigor to the economics of the seemingly axiomatic put on coat, but it is an economic content to show consideration for the expense of the one-sided development of mathematical form results, analysis and economics from the real contact. Traditionally, mainstream economics is often seen as an on-site observation of the subject, this approach led to economic theory preference falsification is difficult, but not confirmed. The objective economic environment of high complexity, many factors influence the interaction and mixing, as well as some state historical contingency occurs, making the extremely large number of economic proposition or assumption scientific economic theory.  As the U.S. subprime mortgage crisis, the Wall Street financial elite abuse of the financial measurement technology, excessive financial innovation under the and address the human Achilles heel of greed and fear.   Of the Environment assumed absolute   addition to popular criticism of mainstream economics on the Mainstream economics, the market acts as the only system of economic environment, and economic freedom as the highest belief. Xu Chenggang, Qian Yingyi and other mainstream economics on the Western system, the most important elements grouped into five on the and economic benefits not related; (2) Modi Ge Li Yani - Miller theorem, means that not related to financial instruments with economic benefits; (3), Coase Theorem, which concluded that the transaction cost tends to zero under the conditions of the statutory The initial configuration of property rights has nothing to do with the economic benefits; (4) Lucas currency neutral theory; (5) Becker - Stigler model, the basic conclusion is in addition to law enforcement outside the court system and related economic benefits. Theory based on the five benchmarks, you can assume zero transaction costs, information and knowledge to fully complete conditions, shielding out the system, cultural factors, for resource allocation to provide the equilibrium point. Although the validity of the five theoretical base itself remains to be tested and investigated, but a similar problem in modern economics, the environment of other common assumptions.  Taking into account the environmental assumptions of mainstream economics absolute, to comply with the guidance of mainstream economics economic practices of people must be the result of disharmony between man and nature. Neoclassical economics is the study of how the allocation of economic resources available to the community in order to maximize the social value of a science. If the goal is to achieve a society must give up or sacrifice something, economists will try to tell us how the value of the tangible, material products the most efficient, The main advantage is the efficient market is the ability to achieve However, this configuration may also appear in the ecological use of resources in unsustainable patterns of human happiness decided lack of consideration of other important factors. changes in economic conditions of others, but not for resources, key environmental factors to consider. That in the Due to environmental measurement and valuation difficulties, tangible environmental benefits to be underestimated, intangible environmental benefits embodied in the economic analysis even less. Neoclassical economic theory and its practical application has been seriously underestimated the cover and widespread global ecological deterioration.  It is because of mainstream economics and the value of misleading misleading, the world's natural and human environment have been seriously eroded. the continuing nature revenge.   Four, guided by the expected behavior, and these are expected to achieve by the act himself as the rational pursuit of the purpose of considering and , aesthetic, religious or any other guided by conscious faith, but purely for its own reckless; (3) feelings, especially feelings,You are not allowed to view links. Register or Login, actions at this time by the sudden outbreak of emotion and passion of the guidelines; (4 ) traditional, familiar with the customs of this time behavior guidelines. In human studies, the mainstream economics stands for .  However, we can classify human behavior, not able to separate them completely. Actions in concrete reality, due to the complexity of human psychology and behavior of the nonlinear characteristics of these four acts of interrelated conditions, each other, inseparable, a variety of behaviors with strong overlap and interference sex. Behavior is not only the purpose of determining the basis of certain values ​​and standards, and the emotion, tradition, also by genetic, cultural heritage, etc. as the internal structure of human life. More importantly, different historical circumstances, created a different culture system, values, history, emotion, so that not a single goal-directed action, and difficult to measure the consistency between the different groups. Therefore, the kind of Moreover, the pursuit of formal economics to promote continued use of  Kuznets reflect the consequences of Economics of the Great Depression had the error analysis, said: But how many to the considered to be a simple mechanical reaction to external stimuli and the interests of the driver, eliminating the significance of human life, of human behavior are somewhat one-sided and superficial understanding of mainstream economics, how can the economic system from which to obtain the composition, operation and so deep understand? at least in Marshall's economics that people should pay attention to the behavior of the judge, the mainstream economics does not give satisfactory answer. The context of the current financial crisis, should the economic theory based on this perspective and ideas to guide the current financial crisis early warning, prevention and control measures, the actual performance is not encouraging.