Tag Archives: finance

Connecting the Instability of Markets and Ecosystems – C.S. Holling and Hyman Minsky

Both markets and ecosystems can, and have, been viewed as being shaped by feedback processes that push them towards a steady state – in markets this is the “invisible hand” – in ecology it is “succession.”  However, what has been … Continue reading

Posted in Ecological Economics, Regime Shifts, Reorganization | Tagged , , , , , , | Leave a comment

Resilience and Euro – diversity

On MacroEconomic Resilience ex-banker Ashwin Parameswaran draws upon Holling’s pathology of natural resource management and the work of Hyman Minsky (a connection I’ve mentioned previously and Ashwin has explored extensively – see here and here) to write about The Resilience Stability Tradeoff: Drawing Analogies … Continue reading

Posted in Adaptation, Vulnerability | Tagged , , , , , , , , | 2 Comments

Resilience and the Euro – networks

The New Scientist recently had an article by Debora MacKenzie on resilience and the Euro.  She writes: … The diversity of a network’s components and the density and strength of its connections – called its connectivity – affect the system’s … Continue reading

Posted in Networks | Tagged , , , , | 2 Comments

The tragedy of a common currency

The current crisis of the Euro emphasizes some basic lessons from the study of resilience of dynamic systems. Attributes of complex systems that enhance resilience are diversity, redundancy and modularity. There is a cost of maintaining resilience. The decision to … Continue reading

Posted in General, Reflections | Tagged , , , , | 2 Comments

Seed’s global reset on tipping points and systematic risk

Seed magazine has a special issue on new approaches to interconnected and complex challenges. It also features interesting articles on TEEB and ecological economics, new modes of science, forecasting, tipping points and systematic risk.  As well as,  Carl Folke’s article … Continue reading

Posted in Networks, Regime Shifts | Tagged , , , , , , , | Leave a comment

What’s driving current food prices?

New Scientist interviewed food policy researchers Maximo Torero and Joachim von Braun from IFPRI about current rise in food prices and they blame financialization of commodity markets: Is this another crisis like the one we had in 2008? Not quite. … Continue reading

Posted in Ecological Economics | Tagged , , , , , , | 1 Comment

Environmental externalities and institutional investors

The UN Environment Programme Finance Initiative is a collaboration of between UNEP and the financial sector that aims to improve the understanding of the connections between environmental and financial performance. A new report Environmental externalities for institutional investors from UNEPFI … Continue reading

Posted in Ecological Economics, Ecosystem services | Tagged , , | Leave a comment

Food security and financial markets

FAO says that Food price volatility a major threat to food security: Concluding a day-long special meeting in Rome the experts recognized that unexpected price hikes “are a major threat to food security” and recommended further work to address their … Continue reading

Posted in Ecological Economics, Regime Shifts | Tagged , , , , , , , , , , , , | 2 Comments

Computer trading producing new financial dynamics?

In October 1987,  stock markets around the world crashed, with the Dow Jones droping 22%.  The causes of this crash are still unclear, but one of the suspected causes was computer automated trading.  This concern lead attempts to design mechanisms … Continue reading

Posted in Regime Shifts | Tagged , , , | Leave a comment

Economist on fat tails and finance

A special report on the future of finance in The Economist Fallible mathematical models: In Plato’s cave: … although the normal distribution closely matches the real world in the middle of the curve, where most of the gains or losses … Continue reading

Posted in Regime Shifts | Tagged , , , , | 1 Comment