Niall Ferguson: An Evolutionary Approach to Financial History (via Catagenesis)

The Lorenz attractor is an example of a non-li...

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There is very little I can add to this (that I haven’t already said before on numerous occasions!):

…Ferguson references Schumpeter as well as other pioneering thinkers on the intersection of the natural world / evolutionary processes and the monetary/economic/financial worlds.

Those who recognize that markets & economies are complex systems, who also understand what complex systems are and how they work, are really the only people who are even getting close to an approximation of reality.

Embedded below is a short clip from a video of a lecture given by Harvard economic historian & theorist Niall Ferguson.  Ferguson discusses many topics which are of interest to this blog – non-linear dynamics and complex systems in the realm of money, finance & economics. Looking at the economy & financial markets through the lens of evolutionary processes provides valuable insights.  For example, Ferguson references Schumpete … Read More

via Catagenesis

Update: …More lessons from nature

COMMENTS (refer to original item for more):

After a random event like a forest fire some life remains in the scorched earth. However, apart from lost structure as an outcome [criticality] any remaining “structure” will have been starved of nourishment during the fire [ becoming fragile]. Survivors were those , often with the most robust root system, best equipped to survive, repair and stabilise. Then to renew and increase the inter-connections that are the framework and structure [complexity] that defines a complex dynamic system.

As the effectiveness of the interdependencies grows so does the complexity, diversity, robustness, chances of survival and…the ability to withstand [uncertainty] most events that beset a forest!!!

Dynamic systems are inherently complex and robust with sustainability “built in”. Exo/endo events that affect the stability, functionality, interdependencies, robustness are first reflected in the complexity of the system…..

I can’t, wouldn’t, claim credit for this extremely interesting extract from a really well informed blog by Ashwin Parameswaran – the link to the item is below and, if you like this I would recommend a visit. In view of the continuing displays of utter dis-engagement from the real world – where citizens dwell – by [the bankers’ and Corporations’ pawns] those we refer to as “Political Leaders”, I really wanted to get this out there for some thought … Read More

via A heid full of mince but at least it’s my mince!