This straightforward article illustrates the necessity of implementing financial policies and measurements derived from complexity theory to better manage and anticipate in the interconnected global economy. The article compares recent research and economic models based on complexity theory with more traditional methods. It explains how tipping points can be recognised sooner, what the consequences are of the current centrality within the economy, how agent-based modeling can further the analysis of financial-economic systems and calls for an online dashboard that monitors and stress-tests the financial system in real time.
This truly is a must read for everyone interested in complexity theory.