ABSTRACT
This chapter focuses on the studies and analyzes of the different economic theories, and identifies the reality gap between economic theories and financial reality. It analyzes the fundamental arguments of the theories of market capitalist and market socialist economic systems. From the analysis made, a synthesis of the dichotomy between the respective economic theories and the practice of banking and finance is attained whilst the reality gap between such is identified. The chapter creates an understanding, from a critical perspective, of the reality of close to four centuries of recurrent financial crises and more significantly, the resulting disastrous social and economic damage that, in turn, has proved to be hazardous to the stability and sustainability of humankind itself. It aims to raise critical consciousness of the importance of promulgating an interdisciplinary-oriented rather than a purely mathematically driven financial system in the hope of bringing about better social and economic stability.
