Updated Oct 1, What Is Reflexivity? The theory of reflexivity has its roots in sociology, but in the world of economics and finance, its primary proponent is George Soros. Soros believes that reflexivity disproves much of mainstream economic theory and should become a major focus of economic research, and even makes grandiose claims that it "gives rise to a new morality as well as a new epistemology. Soros believes that reflexivity contradicts most of mainstream economic theory. The process is self-reinforcing and tends toward disequilibrium , causing prices to become increasingly detached from reality. Soros views the global financial crisis as an illustration of the theory.
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Soros has wryly described his home as a Jewish antisemitic home. Tivadar had also been a prisoner of war during and after World War I until he escaped from Russia and rejoined his family in Budapest.
In Hungarian, soros means "next in line," or "designated successor"; in Esperanto it means "will soar. Soros later described this time to writer Michael Lewis : "The Jewish Council asked the little kids to hand out the deportation notices. I was told to go to the Jewish Council. And there I was given these small slips of paper I took this piece of paper to my father. He instantly recognized it. This was a list of Hungarian Jewish lawyers.
When did you realize that you knew how to make money? He worked as a clerk and later moved to the arbitrage department. Mayer of New York. Mayer — He specialized in European stocks, which were becoming popular with U.
During this period, Soros developed the theory of reflexivity based on the ideas of his tutor at the London School of Economics , Karl Popper. Reflexivity posits that market values are often driven by the fallible ideas of participants, not only by the economic fundamentals of the situation.
Ideas and events influence each other in reflexive feedback loops. Soros argued that this process leads to markets having procyclical "virtuous" or "vicious" cycles of boom and bust, in contrast to the equilibrium predictions of more standard neoclassical economics. He spent the years from to with his main focus on the revision of his philosophy dissertation. Arnhold in George Soros and Jim Rogers received returns on their share of capital and 20 percent of the profits each year.
He then established the Soros Fund and gave investors in the Double Eagle Fund the option of transferring to that or staying with Arnhold and S. It was later renamed as the Quantum Fund , named after the physical theory of quantum mechanics. Securities and Exchange Commission disclosure rules, which he felt would compromise his duties of confidentiality to his investors. The funds will develop 5, rooms over the next three years throughout various Latin American countries.
For Soros, the rate at which the United Kingdom was brought into the European Exchange Rate Mechanism was too high, their inflation was also much too high triple the German rate , and British interest rates were hurting their asset prices. We planned to sell more than that. The markka had been put floating as a result of the early s depression. The Bank of Finland and the Finnish Government commented at the time they believed that a "conspiracy" was impossible.
Nine years later, in , Mahathir met with Soros and afterward stated that he accepted that Soros had not been responsible for the crisis.
By the beginning of , it was clear to Soros Fund Management that the discrepancy between the trade account and the capital account was becoming untenable. We sold short the Thai baht and the Malaysian ringgit early in with maturities ranging from six months to a year.
That is, we entered into contracts to deliver at future dates Thai baht and Malaysian ringgit that we did not currently hold. Subsequently, Prime Minister Mahathir of Malaysia accused me of causing the crisis, a wholly unfounded accusation. We were not sellers of the currency during or several months before the crisis; on the contrary, we were buyers when the currencies began to decline—we were purchasing ringgits to realize the profits on our earlier speculation.
Much too soon, as it turned out. We left most of the potential gain on the table because we were afraid that Mahathir would impose capital controls.
He did so, but much later. According to Soros, market fundamentalism with its assumption that markets will correct themselves with no need for government intervention in financial affairs has been "some kind of an ideological excess. This is a think tank composed of international economic, business, and financial experts, who are mandated to investigate radical new approaches to organizing the international economic and financial system.
Initial investigations found Soros innocent, and no charges were brought forward. In , he married Annaliese Witschak born January 3, Annaliese was an ethnic German immigrant, who had been orphaned during the war. The Rabbi Dr. David Posner officiated the ceremony. She is also a founding partner and member of the board of directors of the Acumen Fund , a global venture fund that employs an entrepreneurial approach in addressing the problems of global poverty  She is married to Eric Colombel born October 26, Jonathan Tivadar Soros born September 10, : A hedge fund manager and political donor.
In , he co-founded Friends of Democracy , a super PAC dedicated to reducing the influence of money in politics. In , he married Jennifer Ann Allan born November 26, They divorced in They have two children: Alexander Soros born : Alexander has gained prominence for his donations to social and political causes, focusing his philanthropic efforts on "progressive causes that might not have widespread support.
She was raised in California, earned an MBA from the University of Miami , and runs an Internet-based dietary supplement and vitamin-sales company. Fraser and Soros separated in Soros was a financial backer of Washington Soccer L. United when the league was founded in , but the group lost these rights in The groups aimed to defeat President George W. Nielsen, an authority on American philanthropy,  "[Soros] has undertaken A study found that a grant program by George Soros which awarded funding to over 28, scientists in the former Soviet republics shortly after the end of the Soviet Union "more than doubled publications on the margin, significantly induced scientists to remain in the science sector, and had long-lasting [beneficial] impacts.
Last year Russia passed a special law prohibiting NGOs from taking money from foreigners. I think this should be banned in Turkey as well. Soros called the fines part of a campaign to "destroy independent society. The government has attacked OSF , the international civil support foundation created by George Soros, and tried to revoke the licence of Central European University Budapest which failed mostly due to significant public outrage . In response Soros called the government "a mafia state".
The government also prepared a three-part law plan called "Stop Soros package" which followed other various law changes  in the same year which hindered workings of several international NGOs in Hungary , which would include various steps against NGOs doing volunteer work related to the refugee crisis.
Anti George Soros sentiment graffiti in Resen , Macedonia The suit alleges that the money was deliberately used to destabilize the Macedonian government. SOS seeks to present "questions and answers about the way Soros operates worldwide" and invites citizens to contribute to the research.
In a press conference held during the same month, Nenad Mircevski, one of the founders of the initiative, stated that SOS would work towards the "de-Soros-ization" of Macedonia. He himself has not used marijuana for years. And who is behind him? The famous Hungarian Jew Soros. This is a man who assigns people to divide nations and shatter them. That was very evident in Ukraine. The package was discovered by a caretaker,  who removed it and notified authorities. It was photographed and exploded by the FBI , which launched an investigation.
None of the devices had exploded.
George Soros’ Theory of Reflexivity
It has also enabled me to explain and predict events better than most others. This has changed my own evaluation and that of many others. My philosophy is no longer a personal matter; it deserves to be taken seriously as a possible contribution to our understanding of reality. Understanding what reflexivity is, and how it affects markets and much more is one of the most important fundamental truths a trader can grasp. The idea is centered around there being two realities; objective realities and subjective realities. Objective realities are true regardless of what participants think about them.
Overview[ edit ] In social theory , reflexivity may occur when theories in a discipline should apply equally 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 by sociology of scientific knowledge practitioners, or when the subject matter of a discipline should apply equally to the individual practitioners of that discipline e. More broadly, reflexivity is considered to occur when the observations of observers in the social system affect the very situations they are observing, or when 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. Within that part of recent sociology of science that has been called the strong programme , reflexivity 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 accounting for these other knowledge systems.
Reflexivity (social theory)
Soros has wryly described his home as a Jewish antisemitic home. Tivadar had also been a prisoner of war during and after World War I until he escaped from Russia and rejoined his family in Budapest. In Hungarian, soros means "next in line," or "designated successor"; in Esperanto it means "will soar. Soros later described this time to writer Michael Lewis : "The Jewish Council asked the little kids to hand out the deportation notices. I was told to go to the Jewish Council.