Over the past three decades, the global financial system has become more dynamic and interconnected, more concentrated and complicated than ever before. Financial engineering seems to know no limits to creating new instruments that link institutions in new ways.
Is that a good thing? Or could the resulting financial network be too complex? Or, perhaps, complex in the wrong way?
About Mark Buchanan
Mark Buchanan, a theoretical physicist, is the author of “The Social Atom: Why the Rich Get Richer, Cheaters Get Caught and Your Neighbor Usually Looks Like You” and two other science books. A former editor of Nature and now a columnist for Nature Physics, Buchanan writes about efforts to use physics concepts to understand dynamics of biology and the social sciences, and is at work on a new book about the physics of finance.
More about Mark Buchanan
A look at biology — which has been tinkering with network designs for billions of years — suggests that the answer to the last question is most likely yes.