For questions, please contact: Prof. Mario Rizzo - firstname.lastname@example.org
For more information.
This paper explores the deep roots of complexity theory in economics. It looks at the great debate between John Maynard Keynes and Friedrich Hayek—both of whom used theories that presaged the complexity science approach. That debate, ofen defned as a debate between optimism and pessimism, is really about how they viewed the economic system. Both saw it as a “living” system of interacting parts, and both aspired to a global order. But Keynes saw the economy as a mechanism to be decoded and controlled, and believed that cultural refinement and technical prowess are mutually reinforcing. For Hayek, the economy is best left to its own self-organizing dynamics—even though the disequilibrium means every boom is eventually followed by a bust. Both arguments have merits and weaknesses, but an important paradox in Hayek’s position has become apparent over time: The free trade he promoted also allows economies to thrive that threaten the system of human values, and that protect sovereignty over human freedom.