Complexity Economics

Complexity economics is the application of complexity science to the problems of economics. It is one of the four C's of a new paradigm surfacing in the field of economics. The four C's are complexity, chaos, catastrophe and cybernetics. This new mode of economic thought rejects traditional assumptions that imply that the economy is a closed system that eventually reaches an equilibrium. Instead, it views economies as open complex adaptive systems with endogenous evolution. Complex systems do not necessarily settle to equilibrium--even ideal deterministic models may exibit chaos, which is distinct from both random ( nondeterministic) and analytic behavior.