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Financial Markets And Economies As Complex Systems

By Kyle Atkinson.

Introduction

A financial market, such as a stock market, or an economy, such as the U.S. economy, are both examples of complex systems.

As such, markets and economies exhibit the behavior of complex systems and metrics used to measure complex systems can be applied.

Thus the application of behavior and metrics from one field of study can be applied to various markets and various economies around the world (not just the U.S.)

Financial Markets and Economies

Financial markets and economies are fundamentally a part of the same thing: they are both part of an interconnected collection of people called a society.

Complex Systems

Evolution

Eric Chaisson posits in his book 'Cosmic Evolution' that a single measurement, energy rate density, can be used to measure the complexity of a complex system.