Predicting the Next Financial CrisisWhy do financial crises occur – and when will the next one come? In the past, economic theory has failed to answer these questions. In this week’s Science Journal Perspectives, economists, physicists, epidemiologists, climate scientists and ecologists call to establish a new early warning system to avoid future global financial crises. They argue that the methods used by scientists to predict weather, traffic or disease epidemics should be used to simulate the financial systems, which could help to avoid the failures we have seen in the past. Professor Doyne tells Jack how the analysis of complex networks could and should be applied to the economy.
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