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Title: Brian Arthur: Complexity in Economic Theory - INET Panel (2/5)

This is the video we talked about in class . When you click there https://www.youtube.com/watch?v=W0dGLEreBrM&t=2s you can see this.

Dr. Brian Arthur discussed his thoughts on complexity theory and criticized neoclassical economics in the video. He emphasized that the economy cannot be studied in a static equilibrium state but should be approached as a dynamically changing, self-organizing system. Arthur argued that neoclassical economics employs a too simplistic model that fails to explain the complexity and variability observed in reality. According to him, studying the economy in an ideal equilibrium state is too limiting. Instead, we need to understand that the economy is constantly evolving, and these changes cannot be fully predicted. The complexity theory advocated by Arthur suggests that the economy often appears chaotic and turbulent, and to understand this, we need models capable of describing these changes and the structural transformations occurring in economic systems.

Regarding whether George Soros’s ideas are still valid, it would depend on Arthur’s perspective. If Soros’s concepts also adopt a similar approach to economic processes, then it can be said that his ideas are still alive and relevant in today’s economic discourse. However, the specific ideas of Soros are not clear from the video (or I don’t hear in the video), so it is difficult to judge their current validity definitively.