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Epilogue
Summary
SALVIATI: Yesterday took us into such good digressions on Prof. Feynman's words and his van that I do not know whether I shall be able to go ahead without your assistance in putting me back on the track of macro-econophysics.
SAGREDO: You do not need to worry, Salviati. Together with Simplicio, I read this book to my pleasure. I found it to contain many beautiful considerations which are novel and impressive. … You shake your head, Simplicio and smile as if I uttered some absurdity.
SIMP.: I merely smile, but believe me. I have an impression that all matters of economy are not covered and the authors do not have answers on business cycles, not to mention how to predict an economic crisis and how to deal with it.
SALV.: I may remind you that we do not yet have a basic understanding of the underlying dynamics of anything at the micro-level: Anyone can write out models of interactions between economic agents like firms and financial institutions, and simulate the dynamics on simulated networks. But there are so many parameters and so many artificial networks.
SAGR.: Ahuh… They have real credit and trade networks, don't they, which can serve as a basis for all the new directions of work?
SALV.: Doubtless there are. We need all the analytical and mathematical tools and modeling ideas exposed in this book to strive for a real understanding of the nature of economic dynamics.
SIMP.: You are simply talking about agent modeling and everyone knows that they are so limited.
SALV.: You may know mathematics well, but you don't know science by just looking at real world. Non-linear equations for macro-variables, exact solutions, stability and chaos may be fun to play with. But they are made-up plays only.
SAGR.: I agree with Salviati. Think of molecules. They interact with each other, optimizing action, which may be comparable to the notion of utility function in economics. With complete understanding of such interactions at micro-level and introducing concepts of statistical physics on how to handle the large number of such interacting heterogeneous objects comes understanding of the dynamics of macro-matter.
SALV.: Such was elaborated upon in Chapter 1.
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- Macro-Econophysics , pp. 356 - 357Publisher: Cambridge University PressPrint publication year: 2017