Austerity and the social construction of economic knowledge

In a rich and wonderfully detailed 2011 article for the American Journal of Sociology, Donald Mackenzie lays out a case for “The Credit Crisis as a Problem in the Sociology of Knowledge.”

The global financial crisis, Mackenzie argues, was partly the result of particular and contingent “knowledge-generating arrangements”, which allowed the wildly mis-allocated risks of the US mortgage securities industry to accumulate and eventually implode. Research for the paper included detailed interviews with 87 financial market participants. Continue reading

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