Classical pragmatism and modern finance

Abstract

The re-evaluation of Classical American Pragmatism carries implications for the way that we might think about financial decision making, post-crisis. By examining the elements of pragmatism and by placing the latter relative to finance theory and forms of moral reasoning, guidelines for financial decision-making may be derived. These guidelines are inherently ethical in that they can be reasonably expected to result in good lives with others. It is further suggested that standard finance-theoretic models and methods can be adapted to fit within a pragmatic-ethical institutional ethos.