Simple Lessons for Policymakers from Embracing Complexity

This article will be published shortly as a chapter in a book “New Approaches to Economic Challenges: The Financial System” , published by the OECD in Paris. It is argued in the chapter that economies are Complex, Adaptive Systems (CAS). Such systems are widespread in nature and society,have been well studied by other disciplines, and have many shared characteristics. This communality implies that insights from other disciplines might inform macroeconomic policies as well. Ironically, the embrace of complexity leads to at least ten lessons for policymakers that, while revolutionary,¬† are both simple and intensely practical.

On 19 August, prior to its publication by the OECD, the chapter was also published as an article in the Swiss financial newspaper “The Market”.