The Modern Global Financial System Is an Ecosystem
Updated: Oct 24, 2018
Independent BPE Researcher
This presentation will outline an argument that the modern global financial system is, in fact, a new kind of ecosystem in its own right, and not just an analogy of one. It is an ecosystem of a slightly different form – a hybrid biophysical and logical ecosystem constrained by additional laws that do not constrain the well-known biological ecosystems. Based on a paper by Boulanger and Bréchet, it will be argued that stochastic agent-based models are the best scientific tools available to study the dynamics of such persistent stochastic biophysical/logical ecosystems. The money-energy link between the logical ecosystem and the biophysical ecosystem will be noted. Then the hypothesized phenomenon of the conservation of money will be examined with a focus on its cause, its implications, and the research needed to validate and/or elaborate the hypothesis. If validated, the benefits should be obvious. As time permits, other previously presented insights into the functioning of the financial ecosystem will be mentioned, such as the dangers of discounted cash flow (DCF) analysis, Galbraith’s theory of the firm, the banking disequilibrium, and the stock market mythology.
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