Complex Adaptive Economics
Rana Foroohar published an excellent op-ed on the need to move from linear to complex thinking, in the face of apparent interconnectedness and unknown unknown world.
Linear systems and baseline reversion to equilibrium is generally assumed. And efficiency rather than resiliency is encouraged.
If the economics profession is going to help solve the world’s biggest problems — from pandemics and climate change to deglobalisation and inequality — economists must stop tweaking the edges of their models and think outside the box.
Brian Arthur’s (Santa Fe Institute, PARC) ideas on complexity economics are very relevant to this line of thinking. For example, his paper on Complexity economics: a different framework for economic thought as well as some of some SFI’s other published content on COVID.