menu

The Economy Isn’t A Machine. It’s Organic and Constantly Evolving. – Evonomics

Category: Economics

Instead of seeing agents in the economy as facing perfect, well-defined problems, we allowed that they might not know what situation they were in and would have to make sense of it. Instead of assuming agents were perfectly rational, we allowed there were limits to how smart they were. Instead of assuming the economy displayed diminishing returns (negative feedbacks), we allowed that it might also contain increasing returns (positive feedbacks). Instead of assuming the economy was a mechanistic system operating at equilibrium, we saw it as an ecology – of actions, strategies, and beliefs competing for survival – perpetually changing as new behaviors were discovered.

-W. Brian Arthur

Source: The Economy Isn’t A Machine. It’s Organic and Constantly Evolving. – Evonomics

< NEXT The Trump Supporters in Econ Departments and Central Banks Everywhere The Trump Supporters in Econ Departments and Central Banks Everywhere

PREV > India's drought foretells of greater struggles as climate warms | New Scientist India's drought foretells of greater struggles as climate warms | New Scientist