Wednesday 20 January 2016

Thinking Capped

Today there was a lot to do, so I thought something light and not too demanding might be the thing.  Then I recalled some sites left aside in the last few days and had a look, big mistake.

This turned up on the Bank of England Underground site dealing with "Extracting Insight From Complexity" which to say the least is testing.  At the end it contemplates running the economy from a bank of monitors in Star Trek style.

So I wonder about all those journalists and pundits who are now in a high fever of excitement about what is happening in the markets, trade, politics and the rest.  There is a sneaking suspicion that they are not entirely up to this kind of thing.

This is the abstract, quote:

The financial system is complex and highly interconnected.  Indeed, interactions between agents are key to its functioning.  But these interconnections have the potential to turn small shocks into systemic crises.

Understanding the complex nature of these interconnections is important, but can also be difficult. In this post we introduce new tools designed to analyse the financial network and help analysts build a better understanding of risks posed by interconnectedness.
I think I will go for a quiet lie down before tea.

1 comment:

  1. From your link :-

    "Because interconnectedness depends on so many different attributes, it can be hard to analyse empirically."

    Analysing events empirically usually means afterwards.