EP 305 J. Doyne Farmer on Complexity Economics

Jim talks with J. Doyne Farmer about his book Making Sense of Chaos: A Better Economics for a Better World. They discuss deterministic chaos & strange attractors, how chaos makes time possible, bounded rationality, economic equilibrium & Nash equilibrium, traditional economics' failures, standard economic theory basics, "as if" vs "as is" approaches, heterogeneity in economic systems, agent-based modeling & its critiques, the "metabolism of civilization" analogy, financial markets as an ecology of strategies, the Prediction Company experience, climate economics, weather forecasting as an analogy for economic forecasting, energy investment modeling, technology cost curves & climate change solutions, the vision of a "conscious civilization," and much more. Episode Transcript Making Sense of Chaos: A Better Economics for a Better World, by J. Doyne Farmer The Eudaemonic Pie, by Thomas A. Bass A Vast Machine: Computer Models, Climate Data, and the Politics of Global Warming, by Paul N. Edwards J. Doyne Farmer is Director of the Complexity Economics programme at the Institute for New Economic Thinking and Baillie Gifford Professor of Complex Systems Science at the Smith School of Enterprise and the Environment, University of Oxford. He is also External Professor at the Santa Fe Institute and CEO and Chief Scientist at Macrocosm. His current research is in economics, including agent-based modeling, financial instability and technological progress. He was a founder of Prediction Company, a quantitative automated trading firm that was sold to UBS in 2006. His past research includes complex systems, dynamical systems theory, time series analysis and theoretical biology. His book, Making Sense of Chaos: A Better Economics for a Better World, was published in 2024.