Sublime

The primary job of business is to solve human problems, and the primary job of the state, then, is to create the conditions for large-scale cooperation to allow that process to happen. That involves things like promoting inclusion. You can’t have large-scale cooperation if you’re systematically excluding large groups of people. You have to have fai

The bottom line is that small changes in the communication structure can affect decisions.

But overall the profession does not excel at seeing trouble ahead and unlike engineering disciplines it doesn’t have a branch of forward-looking failure-mode analysis or of post-crash forensic analysis.

The economy is thus comprised of evolving networks of interacting agents, institutions, and technologies—networks of networks. The macro- level patterns of the economy—growth, innovation, business cycles, market booms and busts, inequality, and carbon emissions—then emerge from these dynamic micro- and meso-level interactions. From the complexity e

The more fragmented the system and the more diverse the incentives of the players, the greater the value in aligning them to work together. Coordination, once a deadbeat managerial function, is now the most valuable function in the modern economy.

Events with one bank can trigger events in other banks in the network, and so systemic risk—overall risk to the system as a whole—is not the summation of independent events, but it is reflected in domino-style avalanches of various sizes and duration.

There is no Newtonian law of markets; they are all ephemeral relationships in a sea of noise and the only way you can do that and capture non-linearity and complexity is with a system that is rich enough to be able to contain all the models, so a universal approximator—that’s what neural nets are—and allows you to do that.

So, awareness of the problem, a common knowledge, awareness that others know, you know that the others are aware of the problem, the generation of common knowledge.