Belief reversals as phase transitions and economic fragility: a complexity theory of financial cycles with reflexive agents Belief reversals as phase transitions and economic fragility: A complexity theory of financial cycles with reflexive agents

• Published in: Review of evolutionary political economy (Online) Vol. 1; no. 1; pp. 67 - 84
• Main Author: Davis, John
• Format: Journal Article
• Language: English
• Published: Cham Springer International Publishing 01.05.2020
• Subjects: Economics; Economics and Finance; Institutional/Evolutionary Economics; International Political Economy; Original Paper; Political Economy/Economic Systems; Reflexivity; A13; P16; Feedback; Boom-bust; G01; Complexity; Soros; Judgment; Minsky; B41

This paper aims to contribute to the analysis of expectations and belief reversals in a evolutionary and complexity economics framework. It formulates its analysis in terms of the concept of reflexivity, drawing on the ideas regarding reflexivity in financial markets of George Soros, and lays out a...