"System change is now inevitable. Either because we do something about it, or because we will be hit by climate change. '...

"We need to develop economic models that are fit for purpose. The current economic frameworks, the ones that dominate our governments, these frameworks... the current economic frameworks, the neoclassical, the market frameworks, can deal with small changes. It can tell you the difference, if a sock company puts up the price of socks, what the demand for socks will be. It cannot tell you about the sorts of system level changes we are talking about here. We would not use an understanding of laminar flow in fluid dynamics to understand turbulent flow. So why is it we are using marginal economics, small incremental change economics, to understand system level changes?"

Thursday, September 13, 2007

Uncertainty about Uncertainty

and uncertainty about uncertainty about uncertainty...

There's a Godel-Escher-Bach strange loop flavor to trying to think rationally about decisionmaking in uncertain circumstances. Wherever recursion appears, life gets interesting.

Anyway, the conversation on the topic on the globalchange list is worth a look, especially for the more mathematically inclined.

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