Laissez–Faire or Intervention: A Reflection on Maintaining System Sustainability

Jian Zhong Chen

Systems Research and Behavioral Science, 2013, vol. 30, issue 3, 260-271

Abstract: Recent literatures about complex systems indicate that the economy self‐organizes under control mechanisms. By applying the theory of control mechanism to capitalism, this paper analyzes why the ongoing world financial crisis is a credit crisis and the epistemological root of credit crisis—information asymmetry. Furthermore, this paper argues that neo‐liberalism economic system and the defective credit management system, which lead to the deficient government supervision and consistent lack of effective government supervision, caused the world financial crisis. This paper also argues that rescue measures taken by many countries cannot resolve the financial crisis fundamentally. Some measures are proposed at the end of this paper to strengthen the negative feedbacks, aiming at defusing or avoiding crises fundamentally. Copyright © 2013 John Wiley & Sons, Ltd.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/sres.2180

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:srbeha:v:30:y:2013:i:3:p:260-271

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1092-7026

Access Statistics for this article

More articles in Systems Research and Behavioral Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().