Fragility of Social and Economic Systems and the Role of “Modality”

Jerzy Hausner, Michał Możdżeń and Marek Oramus

Journal of Economic Issues, 2021, vol. 55, issue 4, 1118-1138

Abstract: The problem of the progressive dysfunctionalization of social and economic systems is the starting point for intellectual exercise undertaken in the article. The origins and course of the 2008 global financial crisis show that the notion that the capacity to self-stabilize (to keep disequilibria under control) in the case of every complex dynamic system deteriorates over time is the pivotal issue. However, social systems interact with one another in numerous ways, for instance by communicating which is one of the most important interactions. We call the space of intersystem communication a “modality.” That term, explained in this article, describes mechanisms in which deliberation helps stabilize social systems by changing the rules of the game, through the efforts of social agents acting as observers of various social systems of which they are part. We argue that the communication space is visibly deteriorating, by being captured by a particular set of economic ideas. We see this as a threat because “variety is the spice of life,” and robustness of the economy depends on existence of a diverse portfolio of ideas, together with actors being ready and institutionally encouraged to defend them. We suggest some solutions that may bring more vigor to modality.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00213624.2021.1994790 (text/html)
Access to full text is restricted to subscribers.

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:mes:jeciss:v:55:y:2021:i:4:p:1118-1138

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20

DOI: 10.1080/00213624.2021.1994790

Access Statistics for this article

More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().