The credit crunch: Ideological, psychological and epistemological perspectives

Two economic interpretations of the credit crunch are outlined and the question posed whether these are incommensurate ideological positions. Psychological perspectives are then explored including insights from cognitive and social psychology. The argument is made that policy options depend on what constitutes the ‘good society’ and whether the culture of financial institutions can be changed by government intervention, social pressure and human agency. It is concluded that those interested in socio-economics have a duty to engage with alternative discourses.