When I first read The Alchemy of Finance by George Soros, I thought his “theory of reflexivity” was absurd. It seemed to be an ex post facto. AA ~ George Soros (Trades, Portfolio) (via FT). The conceptual framework that Soros is referring to is reflexivity. Understanding what. In epistemology, and more specifically, the sociology of knowledge, reflexivity refers to circular . Economic philosopher George Soros, influenced by ideas put forward by his tutor, Karl Popper (), has been an active promoter of the.
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In epistemologyand more specifically, the sociology of knowledgereflexivity refers to circular relationships between cause and effectespecially as embedded in human belief structures. A reflexive relationship is bidirectional with both the cause and the effect affecting one another in a relationship in which neither can be assigned as causes or effects. Within sociology more broadly—the field of origin— reflexivity means an act of self-reference where examination or action “bends back on”, refers to, and affects the entity instigating the action or examination.
It commonly refers to the capacity of an agent to recognize forces of socialization and alter their place in the social structure.
A low level of reflexivity would result in an individual shaped largely by their environment or “society”. A high level of social reflexivity would be defined by an individual shaping their own norms, tastes, politics, desires, and so on.
This is similar to the notion of autonomy. See also structure and agency and social mobility. Within economicsreflexivity refers to the self-reinforcing effect of market sentiment, whereby hteory prices attract buyers whose actions drive prices higher still until the process becomes unsustainable.
This is an instance of a positive feedback loop. The same process can operate in reverse leading to a catastrophic collapse in prices. In social theoryreflexivity may occur when theories in a discipline should apply equally forcefully to the discipline itself, for example in the case that the theories of knowledge construction in the field of sociology of scientific knowledge should apply equally to knowledge construction theody sociology of scientific knowledge practitioners, or when the subject matter of a discipline should apply equally well to tgeory individual practitioners of that discipline, for example when psychological theory should explain the psychological mental processes of psychologists.
Rrflexivity broadly, reflexivity is considered to occur when the observations or actions of observers in the social system affect the very situations they are observing, or theory being formulated is disseminated to and affects the behaviour of the individuals or systems the theory is meant to be objectively modelling.
Thus for example an anthropologist living in an isolated village may affect the village and the behaviour of its citizens under study. The observations are not independent of the participation of the observer. Reflexivity is, therefore, a methodological issue in the social sciences analogous to the observer effect.
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Within that part of recent sociology of science that has been called the strong programmereflexivity is suggested as a methodological norm or principle, meaning that a full theoretical account of the social construction of, say, scientific, religious or ethical knowledge systems, should itself be explainable by the same principles and methods as used for spros for these other knowledge systems.
This points to a general feature of naturalised epistemologiesthat such theories of knowledge allow for specific fields of research to elucidate other fields as part of an overall self-reflective process: Any particular field of research occupied with aspects of knowledge processes in general e.
Reflexivity includes both a subjective process of self-consciousness inquiry and the study of social behavior with reference to theories about social reflexuvity. The principle of reflexivity was perhaps first enunciated by the sociologists William I. Mertonbuilt on the Thomas principle to define the notion of a self-fulfilling prophecy: The prophecy has a constitutive impact on the outcome or result, changing the outcome from what would otherwise have happened.
Reflexivity was taken up as an issue in science in general by Karl Popperwho called it the ‘Oedipal effect’, and more comprehensively by Ernest Nagel Reflexivity presents a problem for science because if a prediction can lead to changes in the system that the prediction is made in relation to, it becomes difficult to assess scientific hypotheses by comparing the predictions they entail with the events that actually occur.
The problem is even more difficult in the social sciences. Reflexivity has been taken up as the issue of “reflexive prediction” in economic science by Grunberg and Modigliani and Herbert A. Simonhas been debated as a major issue in relation to the Lucas Critiqueand has been raised as a methodological issue in economic science arising from the issue of reflexivity in the sociology of scientific knowledge SSK literature.
Reflexivity has emerged as both an issue and a solution in modern approaches to the problem of structure and agencyfor example in the work of Anthony Giddens in his structuration theory and Pierre Bourdieu in his genetic structuralism. Giddensfor example, noted that constitutive reflexivity is possible in any social system, and that this presents a distinct methodological problem for the social sciences.
Giddens accentuated this theme with his notion of ” reflexive modernity ” — the argument that, over time, society is becoming increasingly more self-aware, reflective, and hence reflexive. Bourdieu argued that the social scientist is inherently laden with biasesand only by becoming reflexively aware of those biases can the social scientists free themselves from them and aspire to the practice of an objective science.
For Bourdieu, therefore, reflexivity is part of the solution, not the problem. Foucault examines the history of Western thought since the Renaissance and argues that each historical epoch he identifies 3, while proposing a 4th has an epistemeor “a historical a priori “, that structures and organizes knowledge.
Foucault argues that the concept of man emerged in the early 19th century, what he calls the “Age of Man”, with the philosophy of Immanuel Kant. He finishes the book by posing the problem of the age of man and our pursuit of knowledge- where “man is both knowing subject and the object of his own study”; thus, Foucault argues that the social sciences, far from being objective, produce truth in their own mutually exclusive discourses.
Economic philosopher George Sorosinfluenced by ideas put forward by his tutor, Karl Popper has been an active promoter of the relevance of reflexivity to economics, first propounding it publicly in his book The Alchemy of Finance.
Reflexivity is inconsistent with general equilibrium theorywhich stipulates that markets move towards equilibrium and that non-equilibrium fluctuations are merely random noise that will soon be corrected. In equilibrium theory, prices in the long run at equilibrium reflect the underlying economic fundamentalswhich are unaffected by prices.
Reflexivity asserts that prices do in fact influence the fundamentals and that these newly influenced set of fundamentals then proceed to change expectations, thus influencing prices; the process continues in a self-reinforcing pattern.
Because the pattern is self-reinforcing, markets tend towards disequilibrium. Sooner or later they reach a point where the sentiment is reversed and negative expectations become self-reinforcing in the downward direction, thereby explaining the familiar pattern of boom and bust cycles  An example Soros cites is the procyclical nature of lending, that is, the willingness of banks to ease lending standards for real estate loans when prices are rising, then raising standards when real estate prices are falling, reinforcing the boom and bust cycle.
He further suggests that property price inflation is essentially a reflexive phenomenon: Soros has often claimed that his grasp of the principle of reflexivity is what has given him his “edge” and that it is the major factor contributing to his successes as a trader.
For several decades there was little sign of the principle being accepted in mainstream economic circles, but there has been an increase of interest following the crash ofwith academic journals, economists, and investors discussing his theories.
Economist and former columnist of the Financial Times, Anatole Kaletskyargued that Soros’ concept of reflexivity is useful in understanding the way in which Western analysts believe that China’s “economy is not only slowing, but falling off a cliff.
This is the opposite of the process described in textbooks and built into economic models, which always assume that financial expectations adapt to reality, not the other way round. InSoros funded the launch of the Institute for New Economic Thinking with the hope that it would develop reflexivity further. Margaret Archer has written extensively on laypeople’s reflexivity. For her, human reflexivity is a mediating mechanism between structural properties, or the individual’s social context, and action, or the individual’s ultimate concerns.
While Archer emphasizes the agentic aspect of reflexivity, reflexive orientations can themselves be seen as being socially and temporally embedded. In anthropology, reflexivity has come to have two distinct meanings, one that refers to the researcher’s awareness of an analytic focus on his or her relationship to the field of study, and the other that attends to the ways that cultural practices involve consciousness and commentary on themselves.
The first sense of reflexivity in anthropology is part of social science’s more general self-critique in the wake of theories by Michel Foucault and others about the relationship of power and knowledge production. Reflexivity about the research process became an important part of the critique of the colonial roots  and scientistic methods of anthropology in the “writing cultures”  movement associated with James Clifford and George Marcusas well as many other anthropologists.
Rooted in literary criticism and philosophical analysis of the relationship of anthropologist, representations of people in texts, and the people represented, this approach has fundamentally changed ethical and methodological approaches in anthropology. As with the feminist and anti-colonial critiques that provide some of reflexive anthropology’s inspiration, the reflexive understanding of the academic and political power of representations, analysis of the process of “writing culture” has become a necessary part of understanding the situation of the ethnographer in the fieldwork situation.
Objectification of people and cultures and analysis of them only as objects of study has been largely rejected in favor of developing more collaborative approaches that respect local people’s values and goals.
Nonetheless, many anthropologists have accused the “writing cultures” approach of muddying the scientific aspects of anthropology with too much introspection about fieldwork relationships, and reflexive anthropology have been heavily attacked by more positivist anthropologists. The second kind of reflexivity studied by anthropologists involves varieties of self-reference in which people and cultural practices call attention to themselves.
Within anthropology, Gregory Bateson developed ideas about meta-messages subtext as part of communication, while Clifford Geertz ‘s studies of ritual events such as the Balinese cock-fight point to their role as foci for public reflection on the social order.
Studies of play and tricksters further expanded ideas about reflexive cultural practices. Reflexivity has been most intensively explored in studies of performance,  public events,  rituals,  and linguistic forms  but can be seen any time acts, things, or people are held up and commented upon or otherwise set apart for consideration.
In researching cultural practices reflexivity plays important role but because of its complexity and subtlety it often goes under-investigated or involves highly specialized analyses.
Reflexivity (social theory)
One use of studying reflexivity is georgge connection to authenticity. Cultural traditions are often imagined as perpetuated as stable ideals by uncreative actors. Innovation may or may not change tradition, but since reflexivity is intrinsic to many cultural activities, reflexivity is part of tradition and not inauthentic.
The study of reflexivity shows that people have both self-awareness and creativity in culture. They can play with, comment upon, debate, modify, and objectify culture through manipulating many different features in recognized ways.
This leads to the metaculture of conventions about managing and reflecting upon culture. Flanagan has argued that reflexivity complicates all three of the traditional roles that are typically played by a classical science: The fact that individuals and social collectivities are capable of self-inquiry and adaptation is a key characteristic of real-world social systems, differentiating the social sciences from the physical sciences.
Reflexivity, therefore, raises real issues throry the extent to which the social sciences may ever be viewed as “hard” sciences analogous to classical physics, and raises questions about the nature of the social sciences. From Wikipedia, the free encyclopedia. Archaeological Biological Cultural Linguistic Social. Actor—network theory Alliance theory Cross-cultural studies Cultural materialism Culture theory Diffusionism Feminism Historical particularism Boasian anthropology Functionalism Interpretive Performance studies Political economy Practice theory Structuralism Post-structuralism Systems theory.
Anthropologists by nationality Anthropology by year Bibliography Journals List of indigenous peoples Organizations. Social sciences portal Anthropology portal Economics portal Sociology portal.
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