The economy is 'a highly complex, multi-level system. It must be studied as such', wrote one entry to a Boston Review forum
task economists have set themselves. The global economy is the outcome of near-constant interaction between billions of unique individuals. To attempt to model even a small corner with a few equations is bold, even foolhardy. That economists have made as much progress as they have is impressive., a quarterly magazine, convened a forum to discuss prospects for an “economics after neoliberalism”.
But a bigger influence is the multidisciplinary study of complex systems, the components of which are well understood but interact to produce unexpected large-scale phenomena. The whole is weirder than the sum of the parts. Flowing water can produce unpredictable turbulence, for example, even though the molecules are obeying simple, deterministic physical laws.
The complexity approach begins with more human humans. People are not purely rational or self-interested, but reason with limited information and follow rules of thumb. Those rules evolve as people learn from and adjust to the world around them. Out of countless interactions complex structures emerge, such as firms and political institutions. These constitute a “meso”, or middle, layer between the microeconomy and the macroeconomy, which affects both.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
This simple mental diagram can help you discover your ultimate goal in lifeThis simple mental diagram can help you discover your ultimate goal in life. via CNBCMakeIt
Read more »
13 Simple Habits That Can Change Your Life For The BetterEasy AND free. H/T Quora
Read more »
Mysterious 'Oumuamua interstellar object may have simple explanation after allThe mysterious 'Oumuamua interstellar object may have a simple explanation after all. A new study aligns with previous research suggesting the object is a comet, not an alien spacecraft. - NBCNewsMACH
Read more »
Simple interactions can have unpredictable consequencesHow researchers are grappling with the fundamental complexity of economics
Read more »
Simple ways to pay significantly less for your prescription drugsSometimes by skipping insurance and paying the ‘retail’ price, you’ll pay less.
Read more »
Analysis | The Cybersecurity 202: Arrest at Mar-a-Lago spotlights simple but pervasive threat of thumb drivesAnalysis: Arrest at Mar-a-Lago spotlights simple but pervasive threat of thumb drives
Read more »
A CEO who sold a startup for $1 billion, led a big IPO for another, and raised $80 million for a 3rd shares some simple advice on building a tech unicornA CEO who sold a startup for $1 billion, led a big IPO for another, and raised $80 million for a 3rd shares some simple advice on building a tech unicorn biprime
Read more »