Why we need complex systems simulations in economics? A CLUe lunch talk given by Doyne Farmer

On 9 June, Prof. Doyne Farmer, the Director of the Complexity Economics program at the Institute for New Economic Thinking at the Oxford Martin School, Professor in the Mathematical Institute at the University of Oxford, and an External Professor at the Santa Fe Institute, gave an intereting talk at the CLUe lunch meeting #8.

Prof. Doyne Farmer has broad interests in complex systems, and has done research in dynamical systems theory, time series analysis and theoretical biology. At present his main interest is in developing quantitative theories for social evolution, in particular for financial markets which provide an accurate record of decision making in a complex environment, and the evolution of technologies whose performance through time provides a quantitative record of one component of progress. 

More than 40 researchers from different fields attended this meeting, and Prof. Doyne Farmer show the audiences why we need complex systems simulations in economics. Through his talk, Prof. Doyne Farmer discussed the problem of systemic risk in financial markets, and in particular leverage cycles. He showed how simple simulation models give insight into the crisis of 2008, and also presented a vision of what can be done in the future.

Five researchers also got a chance to talk with Prof. Doyne Farmer individually after the CLUe lunch meeting. Prof. Doyne Farmer also enjoyed this fruitful visit to the CLUe.