Beinhocker concludes that viewing the economy as a complex adaptive system provides us with a new set of tools, techniques and theories for explaining economic phenomena. These include the concepts of design spaces, the processes of evolution just mentioned, and the notion of “fit order” which makes for successful PTs and STs.
Appetite for risk has been a little more variable this year, but overall risk spreads remain pretty low, especially considering some of the events which have occurred over recent years. Of particular note recently has been the marked increase in leveraged buy-out activity around the world.