The European Physical Journal Special Topics

, Volume 214, Issue 1, pp 295–324

A complex systems approach to constructing better models for managing financial markets and the economy


  • J. Doyne Farmer
    • Santa Fe Institute
  • M. Gallegati
    • DiSESUniversit Politecnica delle Marche
  • C. Hommes
    • CeNDEFUniversity of Amsterdam
  • A. Kirman
    • GREQAMAix Marseille Université, EHESS
  • P. Ormerod
    • GREQAMVolterra Partners
    • University of Durham
  • S. Cincotti
    • DIME-DOGE.IUniversity of Genoa
  • A. Sanchez
    • GISCUniversidad Carlos III de Madrid
  • D. Helbing
    • ETH
Open AccessRegular Article

DOI: 10.1140/epjst/e2012-01696-9

Cite this article as:
Farmer, J.D., Gallegati, M., Hommes, C. et al. Eur. Phys. J. Spec. Top. (2012) 214: 295. doi:10.1140/epjst/e2012-01696-9


We outline a vision for an ambitious program to understand the economy and financial markets as a complex evolving system of coupled networks of interacting agents. This is a completely different vision from that currently used in most economic models. This view implies new challenges and opportunities for policy and managing economic crises. The dynamics of such models inherently involve sudden and sometimes dramatic changes of state. Further, the tools and approaches we use emphasize the analysis of crises rather than of calm periods. In this they respond directly to the calls of Governors Bernanke and Trichet for new approaches to macroeconomic modelling.

Graphical abstract
Download to read the full article text

Copyright information

© The Author(s) 2012