Dysfunctional aspects of contemporary financial markets: diagnosis and prescription

First, Veblen’s distinction between industrial and pecuniary employments with special regard to speculation and Keynes´ view of financial markets are introduced. Second, a dominant fundamentalist, market efficiency and a heterodox speculation paradigm of financial markets are distinguished. Third, eleven proposals for financial market reform (e.g. narrow banking) are proposed. Finally, it is asked: What are the methodological consequences of the financial crisis for the prevailing scientific and ideological habits of thought? A more hermeneutical and historical approach is necessary to which Reginald Hansen contributed in his important dissertation on the debate on method.