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The Economy as a Nonlinear Complex System: In Search of a New Paradigm

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  • Leiashvily, Paata

Abstract

On the basis of a dialectical analysis of expedient activity, a decentralized economy is presented as a complex non-linear system organized according to a network principle, like many other systems of animate and inanimate nature. In such an economy, the general laws of the universe, which are studied by synergetics, are manifested in a specific form. This allows us to see many well-known economic phenomena in an unusual light and to discover in them what cannot be detected by standard methods of orthodox theory. The monograph presents a system of concepts, on the basis of which a fundamentally new interpretation of how the market economy functions and how it evolves from its inception to the present is given. It is shown that behind the external chaos of economic life hiding surprisingly ordered, symmetrical, deep structures that provide self-regulation of competitive market economy. Like all living systems, the economy evolves, resulting in the monopolization and financialization of the economy, and over time it loses the ability to self-regulate. Regulation becomes necessary, as a result of which the role of centralization of the economy increases. The search for new methods of regulating such an economy becomes inevitable.

Suggested Citation

  • Leiashvily, Paata, 2022. "The Economy as a Nonlinear Complex System: In Search of a New Paradigm," MPRA Paper 113601, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:113601
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    File URL: https://mpra.ub.uni-muenchen.de/113601/9/MPRA_paper_113601.pdf
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    References listed on IDEAS

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    5. Leiashvily, Paata, 2020. "Macroeconomic Order from Microeconomic Chaos," MPRA Paper 102436, University Library of Munich, Germany.
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    More about this item

    Keywords

    economics; microeconomics; macroeconomics; methodology; economic equilibrium; cost; pricing; non-linear complex system; monopolization; financialization;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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