Complexity Digest 2009.17 - 01.01
Editor-in-Chief: Carlos Gershenson
Founding Editor: Gottfried Mayer
Economics: Meltdown modelling, Nature
Excerpt: Financial regulators do not have the tools they need to predict and prevent meltdowns, says physicist-turned-sociologist Dirk Helbing (...) They can do a good job of tracking an economy using the statistical measures of standard econometrics, as long as the influences on the economy are independent of each other, and the past remains a reliable guide to the future. But the recent financial collapse was a 'systemic' meltdown, in which intertwined breakdowns in housing, banking and many other sectors conspired to destabilize the system as a whole.
- Source: Economics: Meltdown modelling
[ http://dx.doi.org/10.1038/460680a ], Mark Buchanan, DOI: 10.1038/460680a, Nature 460, 680-682, 2009/08/06