From the perspective of institutional economics, the interaction between philosophy and economics

Author: Peng Xue'nan
Publisher:
Publish Date: 2004-08-01
Features: Marx moved towards the depths of history through the fusion of economics and philosophy, establishing historical materialism. This signifies the formation of a holistic economic philosophy perspective based on specific social relations, meaning that institutional analysis has been internalized within economic analysis. Mainstream economics has taken the traditional rationalism worship in philosophy to its extreme, establishing a deductive economic theory system based on the assumption of completely rational economic agents. While philosophy reflects on and critiques traditional rationalism, rebellion against the rationalism tradition has emerged in economics, represented by the old institutional economics and the new institutional economics. North attempted to combine individualistic calculation with historical dialectics, but he could not grasp the holistic perspective of historical dialectics based on specific social relations. The contradictions and dilemmas of the globalized era, as well as the global ecological movement, have put forward socialist demands on the institutionalist-led economic realism movement.