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The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What it Means by George Soros

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Conclusion
My main purpose in writing this book is to demonstrate the validity and importance of reflexivity. The moment is auspicious. Not only has the prevailing paradigm—equilibrium theory, and its political derivative, market fundamentalism—proven itself incapable of explaining the current state of affairs, it can be held responsible for landing us in the mess we are in. We badly need a new paradigm. But the new paradigm I am proposing—the recognition of reflexivity—still has to prove its worth. Until now it could not compete with equilibrium theory because it could not provide unequivocal predictions. That is why it was not given any serious consideration by economists. Now that equilibrium theory has shown itself to be such a failure ...

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