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Critical Realism in Economics and Open-Systems Ontology: A Critique

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  • Andrew Mearman

    (School of Economics, University of the West of England)

Abstract

This paper examines the treatment of ontology offered by Critical Realism. Three main criticisms are made of the Critical Realist treatment of open systems. It is argued that Critical Realism, particularly in the project in economics emanating from Cambridge, UK, tends to define systems in terms of events. This is shown to be problematic. The exemplar of a closed system provided by Critical Realism of the solar system is shown to be flawed in that it is not closed according to the closure conditions identified by Critical Realism. Second, the negativity of the definitions adopted is problematic for heterodox traditions attempting to build positive programs. The dualism of the definitions is also inconsistent with Dow’s approach. This has ramifications for the coherence of Post Keynesianism. Third, the definitions tend to polarize open and closed systems and ignore the degrees of openness evident in reality. This polarization of systems leads to polarized methodology and unsustainable arguments to reject so-called closed-systems methods.

Suggested Citation

  • Andrew Mearman, 2004. "Critical Realism in Economics and Open-Systems Ontology: A Critique," Working Papers 0401, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:0401
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    Cited by:

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    2. Eduardo Strachman & Jos Ricardo Fucidji, 2012. "The Current Financial And Economic Crisis Empirical And Methodological Issues," Journal of Advanced Studies in Finance, ASERS Publishing, vol. 3(1), pages 95-109.
    3. Lang, Trudi & Ramírez, Rafael, 2017. "Building new social capital with scenario planning," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 51-65.
    4. Jussi Ahokas, 2011. "A comprehensive view of regional economic development in Finland," ERSA conference papers ersa10p469, European Regional Science Association.
    5. Roy J. Rotheim, 2013. "The economist who mistook his model for a market," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Teaching Post Keynesian Economics, chapter 2, pages 34-55, Edward Elgar Publishing.

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    Keywords

    open systems; closed systems; Critical Realism; Post-Keynesianism; dualism;
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