- List of Figures
- List of Tables
- Global Finance And Its Institutional Spaces
- Politics And Financial Markets
- Finance And Institutional Investors
- Business Groups And Financial Markets As Emergent Phenomena
- Central Banking And The Triumph Of Technical Rationality
- What is a financial market? Global markets as microinstitutional and post-traditional social forms
- Auctions And Finance
- Interactions And Decisions In Trading
- Traders And Market Morality
- The Material Sociology Of Arbitrage
- Seeing Through The Eyes Of Others: Dissonance Within And Across Trading Rooms
- Market Efficiency: A Sociological Perspective
- Financial Analysts
- Rating Agencies
- Accounting And Finance
- The International Monetary Regime And Domestic Political Economy: The Origin Of The Global Financial Crisis
- A Long Strange Trip: The State And Mortgage Securitization, 1968–2010
- Dead Pledges: Mortgaging Time And Space
- Financial Crises As Symbols And Rituals
- The Sociology Of Financial Fraud
- The Disunity Of Finance: Alternative Practices To Western Finance
- Islamic Banking And Finance: Alternative Or Façade?
- Geographies Of Finance: The State-Enterprise Clusters Of China
- The Financialization Of Art
- Historical Sociology Of Modern Finance
- Gender And Finance
- The Role Of Confidence In Finance
- Finance In Modern Economic Thought
- Financial Automation, Past, Present, And Future
Abstract and Keywords
This article analyzes the place of modern finance in modern economic theories. It aims to show how economics has influenced, and continues to influence, modern financial theory. The article is organized as follows. The first part focuses on the theoretical foundations of modern financial theory. It analyzes the way modern probability theory and economics were linked together to create modern financial theory. The second part presents the key works of the dominant paradigm of financial economics, which was built during the 1960s and the 1970s. It shows how major concepts and hypotheses from economics were integrated into mathematical models. The third part looks at anomalies that have emerged since the end of the 1970s and are inconsistent with the dominant paradigm. The last part deals with two major approaches born outside financial economics — social studies of financial markets and econophysics — which are among the greatest challenges to the foundations of the dominant paradigm of financial economics today.
Franck Jovanovic is Professor of Economics at TELUQ, Université du Québec à Montréal. His research deals with the history of financial economics, and, more recently, with econophysics and its links with financial economics. Among his most recent publications are “The Construction of the Canonical History of Financial Economics,” History of Political Economy (2008) and “The History of Econophysics’ Emergence: A New Approach in Modern Financial Theory” (with Christophe Schinckus), forthcoming in History of Political Economy (2013).
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