Andy Haldane’s speech at Jackson Hole today, The Dog and the Frisbee, is the single best speech by a regulator or financier anywhere in 2012. It is a splendid application of complexity science to the field of financial regulation. It is a succinct analysis of why “more begets more,” why big finance is leading us…
I am one of those who believes that we cannot possibly meet the challenges presented by the modern financial system, whether global or domestic (it’s almost all the same now), by using the traditional precepts of regulation. These precepts presuppose unrealistic methods of diktat, they involve static views of the agents that operate withing the…
The best way for us to approach financial reform is to understand financial markets and the financial system itself as a series of highly complex adaptive systems–a rich and diverse ecology. These ecologies are continually evolving. They are inhabited by highly complicated organisms–all behaving in very complicated ways–such as banks, exchanges, regulators and people. Adopting…
As we move for a moment beyond the pitched partisan battles surrounding financial, health care, environmental and immigration reform, many are beginning to think more earnestly about the challenge of regulation itself. My own work, along with that of a growing band of others influenced by dramatic developments in the natural and social sciences, has…
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