Look at Hyrum Minsky, an old Keynesian economist who never really bought into the efficient market hypothesis. He tried to describe why bubbles occur. His explanation was that they grew out of too much stability. As financial markets stabilize and grow, they can go from the relatively conservative principles that got them there to a … More Stability and Instability in Financing
What is so important about the “edge of chaos?” What does it do? It seems that it is the sweet spot which complex systems have evolved to solve their own problems internally. At the edge of chaos, a body can heal itself through the activation of its immune system and its ability to call on … More Why Edge of Chaos?
It seems that creativity and growth happens not at the extremes but at the edge between order and chaos. Too much order will eat into the creativity, and too much chaos will devour anything stable enough to grow. This is a tough balance to strike for any dynamic system, which is why positive feedback loops … More The Edge of Chaos