J. Doyne Farmer - Networks and Systemic Risks

The video discusses the differences between economics and physics, focusing on market laws and systemic risk. It defines systemic risk and provides historical examples, emphasizing its presence in financial markets. The speaker introduces a model illustrating systemic risk and leverage, highlighting the role of power law tails in economics. The video concludes by advocating for treating economics as a complex system, drawing parallels with climate modeling and suggesting changes in economic epistemology.

What does the speaker suggest about the need for changes in economic modeling?

In what ways does the speaker believe economics should be treated as a complex system?

What are the implications of the speaker's views on the Lucas critique?

How does the speaker propose to improve the toolkit used in economics?