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On 25 Apr 2002 at 18:26, Ken Brown wrote:
> This kind of thing has implications for economics & technology &
> markets of course (cf Santa Fe, ad infinitum). People who think
> like ecologists tend to assume that a more complex market, with
> more participants, and more kinds of interaction between them,
> will be in the long run more "stable" - perhaps because that is
> what they think they see in nature. People who think like
> engineers may disagree and talk of excessive market volatility,
> and the dangers of new forms of trading & so on, and they need
> for regulation, looking for a few global variables to track and
> control.
No.
People who think like economists or libertarians will conclude
that markets tend to stability, because humans will analyze
fluctuations, attempt to predict them, and then take precautionary
action to protect themselves, which will have the affect of
smoothing the fluctuation, unless prevented by forceful state
action as in the 1930s.
Those who think like ecologists or totalitarians will conclude
markets are unstable, because they think that humans lack the
wisdom to anticipate the future.
--digsig
James A. Donald
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