IDEAS home Printed from https://ideas.repec.org/a/ids/ijmcph/v7y2013i1p1-12.html
   My bibliography  Save this article

State regulation or state capitalism?: a systems approach to crisis prevention and management

Author

Listed:
  • Yuri Yevdokimov
  • Mikhail A. Molchanov

Abstract

The recent economic and financial crisis of 2007-2009 and the ongoing recession in Europe have shown the inadequacy of classic concept of capitalism. The rationality of economic agents and self-regulation of markets have been questioned. Views on the future of capitalism range from its fine-tuning to the complete overhaul. This paper argues that economic regulation might be a better option if a systems approach is used as its underlying methodology. To illustrate the point, we analyse the financial sector from the viewpoint of a network organisation. Without a systems administrator, the network effects, including the systemic risk, cannot be internalised by the markets themselves. Markets are living systems, similar to complex biological systems. Just as full spontaneity is absent in the world of living beings, so it is absent in the world of the economy. The sustained regulation of collective behaviour of economic agents is needed for capitalism to survive.

Suggested Citation

  • Yuri Yevdokimov & Mikhail A. Molchanov, 2013. "State regulation or state capitalism?: a systems approach to crisis prevention and management," International Journal of Management Concepts and Philosophy, Inderscience Enterprises Ltd, vol. 7(1), pages 1-12.
    • Handle: RePEc:ids:ijmcph:v:7:y:2013:i:1:p:1-12
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=52828
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmcph:v:7:y:2013:i:1:p:1-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=90 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.