The Free Market Center
Markets, whether free or not, consist of systems. The elements of those systems have connections, or feedbacks, to other elements in the system. Changes in one part in the market lead to changes in other parts.
Markets operate as complex adaptive systems systems. They have connections from one element to another plus feedback mechanism that allow processes in one element to affect process in another, sometimes distant element.
I will address the systemic nature of markets throughout this site.
Markets, whether subject to intervention or not, do not operate in isolation. Each market consists of a system that makes up a component of a network of ever larger systems culminating in what we might refer to as the world economy. We cannot, however, understand any economy as a unit. We must always keep the network, interconnected, nature of economies in mind.
In this section we will examine the systemic nature of markets. We will explain why all of us must play the role of participants and can never be effective controllers of the systems we refer to as economies.
To demonstrate the dynamics of market systems I have created a simple model of a market system. To view the model proceed to the Model Preface
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