I have long believed that people misinterpret the behavior of markets because they don’t understand the systemic structure of those markets. A lot of economists treat “the economy” as if it were stagnant. They talk a lot about “equilibrium.” Well, markets like other living systems achieve “equilibrium” only in death. The complexity of markets provides yet another reason that central planning cannot work.
I want to give you a look at another Prezi that I created several years ago describing the basic elements of “systems thinking.” I will delve into systems thinking more in future publications but for now here’s an Introduction to Systems Thinking.
Have fun.