Macroeconomic and Financial Management in an Uncertain World: What Can We Learn from Complexity Science?
Keywords:
Macroeconomics, Finance, Complexity ScienceAbstract
This paper discusses serious drawbacks of existing knowledge in macroeconomics and finance in explaining and predicting economic and financial phenomena. Complexity science is proposed as an alternative approach to be used in order to better understand how economy and financial market work. This paper argues that understanding characteristics of complex system could greatly benefit financial analysts, financial regulators, as well as macroeconomic policy makers.
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56. Ormerod, P. (2012). Positive Linking: How Networks Can Revolutionize the World. London: Faber and Faber.
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63. Santos, L. R. (2011). Too Err Is Primate. In: M. Brockman, ed. Future Science: Cutting-Edge Essays from the New Generation of Scientists. New York: Oxford University Press, pp. 99-113.
64. Sbordone, A. M., Tambalotti, A., Rao, K., and Walsh, K. (2010). Policy Analysis Using DSGE Models: An Introduction. FRBNY Economic Policy Review, 16, 2, pp. 23-43. Accessed 20 October 2015, from http://www.ny.frb.org/research/epr/10v16n2/1010sbor.html
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67. Sitthiyot, T. (2014). Measuring and Managing Risk within a Sovereign Framework: Time to Abandon Old Thinking. Finance and Fiscal Journal, 26, 81, pp. 72-76.
68. Slingerland, E. G. (2015). Scientific Morality. In: J. Brockman, ed. This Idea Must Die: Scientific Theories That Are Blocking Progress. New York: Harper Perennial, pp. 365-368.
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Published
2015-12-18
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Sitthiyot, T. (2015). Macroeconomic and Financial Management in an Uncertain World: What Can We Learn from Complexity Science?. Thailand and The World Economy, 33(3), 1–37. Retrieved from https://so05.tci-thaijo.org/index.php/TER/article/view/137680
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