No sooner (literally) had I written about the complexity economics of the new book by David Colander and Roland Kupers,, than (in one of the many instances of serendipity in life) another book on complexity turned up in the post, courtesy of its author, Peter Smith. The book is .
[amazon_image id=”0957069707″ link=”true” target=”_blank” size=”medium” ]The Reform of Economics[/amazon_image]
The book looks like it argues for a more realistic alternative to mainstream economics by actually developing it, using agent-based modelling. In a covering letter, Dr Smith says the intelligent agents: “learn by experience how to respond to market conditions. … They can engage in price exploration, and learn to manage their inventory, plant renewal and cashflow (or go bust), all starting from far-from-equilibrium states.” He also describes his research, and his search for a post-crisis renewal of economics as “a mite lonely.” I think it might be less lonely than he fears.