My post on new thinking on the Complexity Economics suggested by the need for better conceptual models for reading economic data discussed at the INET – Bretton Woods conference, was also generously reposted on The Capital Institute Blog. This is to add to that what Soros said about economic complexity in the opening session of the INET conference Emerging economic order : What Lies Ahead? (with Anatole Kaletsky moderating talks by Jean-Paul Fitoussi, Harold James, Kenneth Rogoff and George Soros), and my brief comment too.
Soros is one of the few people talking about the world economy as a system of independently acting parts, which are now having more and more difficulty coordinating. I think you may recall that increasing complexity causing difficulty for coordinating the parts of systems, is a natural condition that occurs at the limits of growth, that I have actually been talking about with concern for decades.
Soros mainly described what changed when world financial regulators had to intervene to prevent the financial sector from collapsing, as it would have on its own. He also described briefly how he had profited so much from the preceding economic order, moving his money ahead of the curve, by reading the emerging positive feedbacks and then the inevitably following negative feedbacks, that take things back to stability. Continue reading New Economic Thinking – What Soros said