This is the text of an article in the Washington Post by Dominic Basulto about last week’s events in the financial markets. Great stuff. When news first broke Thursday that JPMorgan’s credit derivatives portfolio had sustained a loss of $2 billion, and potentially as much as $5 billion, on trades gone awry, there was an [...]
Archive for the ‘Economics’ Category
JP Morgan and the Price of Complexity
Posted in Accountability, Biology, Chaos, Economics, Evolution, Financial crisis, Innovation, Institutions, Knowledge and learning, Leadership, Networks, Organisations, Self organisation, Strategy, Technology, Trade on May 15, 2012 | Leave a Comment »
South Africa’s democracy: Complexity theory in action
Posted in Accountability, Economics, Evolution, Innovation, Institutions, Leadership, Public Policy, Resilience, Strategy on December 16, 2011 | 4 Comments »
Dr Brian Levy is a Public Sector Governance Advisor at the World Bank, andused to head up the unit responsible implementing the Bank’s governance and anti-corruption strategy. In this guest post, cross-posted from here, he explores the relevance of complexity theory insights for South Africa. A fascinating read. The edge of chaos is the balance [...]
New Scientist Briefing: Can ecosystems show how to fix the euro?
Posted in Biology, Economics, Financial crisis, Innovation, Institutions, Knowledge and learning, Networks, Public Policy, Technology, Trade on November 10, 2011 | 5 Comments »
The eurozone, like the rest of the world economy, is a complex networked system. That gives it properties economists rarely consider but which could help us understand the current crisis. This New Scientist ‘Science in Society’ Briefing examines the issues. What is a complex network? Complex networks have many interconnected components which influence each other’s [...]
What Does The Atlas of Economic Complexity Mean for Development?
Posted in Climate change, Economics, Evolution, Financial crisis, Innovation, Networks, Public Policy, Reports and Studies, Resilience, Technology, Trade on November 3, 2011 | 9 Comments »
Ricardo Hausmann of Harvard and Cesar Hidalgo of MIT (whose work I have blogged about previously here) have just published the deeply impressive Atlas of Economic Complexity. It is built around an innovative, network-based methodology for understanding economies and their potential for growth. It represents perhaps the most systematic and in-depth application of the ideas [...]
Success, failure and what lies between
Posted in Accountability, Economics, Evolution, Innovation, Institutions, Knowledge and learning, Leadership, Meetings, Public Policy, Strategy on June 17, 2011 | 1 Comment »
Earlier this week Tim Harford, also known as the Undercover Economist, gave a fantastic talk at ODI on the topic of ‘Development as Trial and Error’. Drawing on his latest book, Adapt: Why Success Always Starts with Failure, Tim provided the audience with a compelling account of the need for a different way of thinking [...]
Latest meeting on Complexity and International Development
Posted in Economics, Meetings on May 13, 2011 | Leave a Comment »
Yesterday saw a UKCDS meeting in London on complexity and international development, which I helped to convene and chaired. Speakers included Eric Beinhocker, Yasmin Merali, Melissa Leach and Danny Burns. Duncan Green of Oxfam has already provided an excellent write-up here - watch this space for the detailed meeting report and next steps.
The globalisation of vulnerability
Posted in Agriculture, Climate change, Conflict and peace building, Economics, Financial crisis, Innovation, Institutions, Knowledge and learning, Natural disasters, Organisations, Public Policy, Resilience on January 11, 2011 | 4 Comments »
Most analysts agree that globalisation has become more intensive and dramatic in recent decades because of advances in technology, communications, science and transportation. While it can be a catalyst for development and progress, globalisation also carries significant and increasing challenges for aid policy makers and practitioners alike. I: The new face of vulnerability? Recent years [...]
Complexity and the Wealth of Nations
Posted in Economics, Evolution, Innovation, Networks, Public Policy, Self organisation, Technology, Trade on December 15, 2010 | 2 Comments »
Complexity scientists have long argued for the use of concepts such as nonlinearity and interconnectednesss to better understand economic phenomena, including growth, market failures and crashes. Ongoing research at the Harvard Center for International Development is taking this area of work forward in very promising ways. In some ways, as Tim Harford has argued, the notion [...]
Can Grand Challenges disrupt economic orthodoxies?
Posted in Biology, Economics, Evolution, Innovation, Public Policy, Reports and Studies on November 30, 2010 | 1 Comment »
In October, the US National Science Foundation put out a Grand Challenge asking economists and social scientists to draw up “grand challenge questions that are both foundational and transformative”. Respondents to the 2020 challenge were asked to look forward 10-20 years, explain the challenges ahead and propose a strategy for addressing them. The wording of the [...]
Alan Greenspan – Closet Complexity Scientist?
Posted in Economics, Financial crisis, Innovation, Leadership, Public Policy, Resilience on November 8, 2010 | 2 Comments »
In one of his many speeches, Alan Greenspan, former Chairman of the FRB, talked about “Monetary Policy under Uncertainty”. According to a rather mischievous article in the Post-Autistic Economics Review, he “expressed numerous ideas which could have come straight out of the mouth of a complexity economist.” The relevant quotes from the speech are highlighted below. First, [...]
