Further Discussion: Is Practice Ahead of Theory? —Based on the Case of Finance

This appendix explores a common saying that “practice has gone in front of theory”, and obtains some valuable insights. In history, practice might be ahead of theory for hundreds of years, such as the practice and theory of commercial banking. The practice of being ahead in several years is often concerned, but that of being ahead very long is often ignored. Based on reasonable division of labor, practice should be responsible for exploring new fields and providing problems to be studied for theory; theory should solve problems for practice and promote practical progress. Therefore, practice should be “ahead of theory”. Theory and practice should cooperate with each other to jointly promote the progress of human society. Based on these findings, further discussions reveal more insights, such as problem solving relies on theory rather than practice, because practice stresses more on timeliness rather than rightness. Other discussions, like how to make sure the usefulness of theories, how to evaluate theories, etc., also reveal relevant insights. The relationship between theory and practice is often puzzling. Sometimes people think that theory guides practice. Then, theory should precede practice. Sometimes people think that theory comes from practice. Then, practice should precede theory. In history, there are both cases where theory or practice is in front. It is necessary to discuss from the perspective of rational relations whether theory or practice should be in front.