Kioloa08-Financial meltdown working group
From COSNet
| Mind Games at Kioloa 2008 |
Contents |
Introduction
Research Questions for Kioloa
Are there aspects of what was going on in the lead up to the current crisis that could have been more readily identified as a problem had policy-makers looked at the world from a CSS perspective?
Do we have anything to say about the appropriate balance between market failure risk and government failure risk as the pendulum shifts back towards a more pro-regulatory stance? Perhaps along the lines of government evolving at a slow evolutionary pace (or punctuated equilibria?) and private sector adapting very quickly?
How should policy makers consider risk from the interaction of behaviours/decisions when it isn't linearly related to the individual effects of those behaviours/decisions?
Background
Reading
(please add refs/links as you think-of/find them)
Directly related to the financial meltdown
There is a great podcast/blog produced in the States by some financial reporters that offer daily updates on the financial situation there as well as in-depth explanations for lay people of all of the terms that get thrown around. Link
By the same group are two hour-long programs that also explain the way this crisis has cascaded. (With an emphasis on the US aspects of the problem, but you get a sense of the global ripples.) Both the sub-prime mortgage crisis trigger and the resulting global meltdown.
Subprime Primer The Subprime Primer is a slide presentation that uses stick figures to explain the present economic meltdown.
Relevant science
A great article on modeling philosophy that is worth keeping in mind: Steve Bankes (1993). Exploratory Modeling for Policy Analysis. Operations Research 41(3): 435-449.
Complexity in the financial system
Essay in Nature 30 October 2008 on the need for a scientific revolution in economics:
Paper by Bob May on 'Ecology for Bankers'
