Large changes of financial market prices without exogenous causes deviate significantly from the Gaussian behavior of random variables. This indicates that financial markets should be treated as complex systems, for which nonlinear interactions of its subunits/agents are crucial. I focus on how the complex systems perspective impacts the notion of explanations in economics. The mechanistic model seems to fit the bill, but problems surface on closer scrutiny. One characteristic of complex systems is that their behavior is surprisingly independent from microscopic (...) details. Thus, mechanistic explanations in the microreductionist manner seem unavailable. Despite these conflicts, I defend a modified structural mechanistic approach. (shrink)

It is shown that three common conditions for scientific explanations are violated by a widely used class of domain-independent explanations. These explanations can accommodate both complex and noncomplex systems and do not require the use of detailed models of system-specific processes for their effectiveness, although they are compatible with such model-based explanations. The approach also shows how a clean separation can be maintained between mathematical representations and empirical content.