TY - JOUR
T1 - Complexity theory and financial regulation
AU - Battiston, Stefano
AU - Farmer, J Doyne
AU - Flache, Andreas
AU - Garlaschelli, Diego
AU - Haldane, Andrew G
AU - Heesterbeek, Hans
AU - Hommes, Cars
AU - Jaeger, Carlo
AU - May, Robert
AU - Scheffer, Marten
PY - 2016/2/19
Y1 - 2016/2/19
N2 - Traditional economic theory could not explain, much less predict, the near collapse of the financial system and its long-lasting effects on the global economy. Since the 2008 crisis, there has been increasing interest in using ideas from complexity theory to make sense of economic and financial markets. Concepts, such as tipping points, networks, contagion, feedback, and resilience have entered the financial and regulatory lexicon, but actual use of complexity models and results remains at an early stage. Recent insights and techniques offer potential for better monitoring and management of highly interconnected economic and financial systems and, thus, may help anticipate and manage future crises.
AB - Traditional economic theory could not explain, much less predict, the near collapse of the financial system and its long-lasting effects on the global economy. Since the 2008 crisis, there has been increasing interest in using ideas from complexity theory to make sense of economic and financial markets. Concepts, such as tipping points, networks, contagion, feedback, and resilience have entered the financial and regulatory lexicon, but actual use of complexity models and results remains at an early stage. Recent insights and techniques offer potential for better monitoring and management of highly interconnected economic and financial systems and, thus, may help anticipate and manage future crises.
U2 - 10.1126/science.aad0299
DO - 10.1126/science.aad0299
M3 - Article
C2 - 26912882
SN - 0036-8075
VL - 351
SP - 818
EP - 819
JO - Science
JF - Science
IS - 6275
ER -