Understanding Economy Through Complexity Science

An effective understanding of the economy can be developed by using a limited number of critical variables rather than focusing on individual agents, as suggested by Professor Steve Keen. By applying concepts from complexity science and chaos theory, it's possible to create a model that accurately reflects economic dynamics, including cycles of booms and busts. This approach challenges the traditional neoclassical view of the economy as being in a constant state of equilibrium. Instead, Keen argues for building a non-equilibrium model that better represents the fluid nature of economic interactions.