The Economy as a Nonlinear Complex System: In Search of a New Paradigm

Paata Leiashvily

MPRA Paper from University Library of Munich, Germany

Abstract: On the basis of a dialectical analysis of expedient activity, a decentralized economy is presented as a complex non-linear system organized according to a network principle, like many other systems of animate and inanimate nature. In such an economy, the general laws of the universe, which are studied by synergetics, are manifested in a specific form. This allows us to see many well-known economic phenomena in an unusual light and to discover in them what cannot be detected by standard methods of orthodox theory. The monograph presents a system of concepts, on the basis of which a fundamentally new interpretation of how the market economy functions and how it evolves from its inception to the present is given. It is shown that behind the external chaos of economic life hiding surprisingly ordered, symmetrical, deep structures that provide self-regulation of competitive market economy. Like all living systems, the economy evolves, resulting in the monopolization and financialization of the economy, and over time it loses the ability to self-regulate. Regulation becomes necessary, as a result of which the role of centralization of the economy increases. The search for new methods of regulating such an economy becomes inevitable.

Keywords: economics; microeconomics; macroeconomics; methodology; economic equilibrium; cost; pricing; non-linear complex system; monopolization; financialization (search for similar items in EconPapers)
JEL-codes: A10 C00 D24 D33 D42 D46 D47 D50 E32 E5 E58 (search for similar items in EconPapers)
Date: 2022-06-20
New Economics Papers: this item is included in nep-hme
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