Understanding economic crisis by systemsthinking.
The eurozone, like the rest of the world economy,
is a complex networked system. That gives it properties economists
rarely consider but which could help us understand the current crisis. New Scientist takes a closer look
What is a complex network?
Complex networks have many
interconnected components which influence each other's behaviour. These
changes then feed back on each other. A famous example is the numbers of
predators and prey in a given environment, which vary in a complex
interdependent way. The eurozone – the 17 countries that share a common
currency, the euro – is similarly interdependent, with similar feedback
mechanisms.
The below article of New Scientist gives some explanation:
Briefing: Can ecosystems show how to fix the euro? - science-in-society - 10 November 2011 - New Scientist
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