Sublime

Economics itself is beginning to respond to these changes and reflect that the object it studies is not a system at equilibrium, but an evolving, complex system whose elements—consumers, investors, firms, governing authorities—react to the patterns these elements create.

(1) new money comes from new ideas,

And so the nature of modern technology is bringing a new set of shifts: In the management of businesses, from optimizing production processes to creating new combinations—new products, new functionalities. From rationality to sense-making; from commodity-based companies to skill-based companies; from the purchase of components to the formation of a

Each company is trying to figure out how to strategize, how much to invest, what the technology should be. In a case like that, it’s not at equilibrium.

Therefore, collectively technology advanced by capturing phenomena and putting them to use.

“The Global Economy as an Adaptive Process,” at seven pages and zero equations, is well worth a read. Holland recounts many, now familiar, difficulties in mathematical analysis of economics that assume linearity, exclusively negative feedback loops, equilibria, and so on, before proposing that the economy is best thought of as what he calls an adap

She explained that an externality was not irrelevant, but, rather, uncounted—a consequence without a cost.

To capture the complex and complicated nature of real economies, we need to thoroughly explore the wilderness of bounded rationality, entering through both gates.

we should think of the process of the division of labor not in terms of vertical integration of minutely specialized jobs in manufacturing firms (though it is that, too) but rather in terms of the distribution of tasks in networks that are generally not hierarchies and the necessary creation of knowledge entailed by the specialized task and its int