How Can We Understand Our Complex Economy?

Explore the complex systems approach to economics in this Oxford Mathematics Public Lecture. Delve into the challenges of predicting large-scale economic events and learn how insights from physical and natural sciences can offer alternative methods to standard economic forecasting. Discover successes of this new approach and gain a vision for the future of economics as it tackles global challenges. Examine topics such as the business cycle, financial panics, leverage cycles, and agent-based models. Understand the role of computer simulations, learning algorithms, and game theory in economic modeling. Gain insights from Professor J. Doyne Farmer, Director of the Complexity Economics program at Oxford, as he presents a fresh perspective on understanding and forecasting our complex economy.

Intro
The external environment
The business cycle
Financial panics
Funding for economics
What do economists do
The business cycle model
The strategic contest
The Nash equilibrium
Learning algorithms
What we found
Multiplayer games
Fixed points
Computer simulation
Leverage cycles
Leverage
The Model
Key Fact
Value at Risk
AgentBased Models