In Organic Mechanics (Financial Times, 26 Nov. 2009), Clive Cookson, Gillian Tett, and Chris Cook discuss applying evolutionary biology concepts to understanding and stabilizing complex economic systems.
Bankers and financial economists are working with mathematical biologists to learn lessons about resilience from natural ecosystems – from fisheries to forests – and from the spread of disease. The exercise is certainly of more than academic interest. Andrew Haldane, executive director for financial stability at the Bank of England, says the regulatory structure for banking may be shaped by studies now in progress that treat global finance as a “complex adaptive system” like a living ecosystem.
-RichardH
Excellent article. I recommend it to anyone who is interested in learning of more realistic economic models.
This idea of applying evolutionary and ecological principles fits in with what I have been reading of late, but it is a somewhat new spin on the issue for me.
Of course, I like the fact that this makes reference to some authors and topics about which I have already read.