A recent article in New Scientist, When the Financial System is Like an Ecosystem, blames the world’s current financial troubles on the inability of established models and methods to take account of the complex dynamics of the global financial system. It advocates that the system should be re-engineered, using insights from the natural world.
At the same time, though, the article ignores the powerful influence of the complex social dynamics of the overall process. These are fundamental to the way that the ‘system’ works. And it is these that continue to undermine the attempts that governments and others are making to return the economy to some degree of normality.