The economic system and the financial market have proved to be enormously successful in distributing resources, freeing capital, and connecting traders. For them to function optimally, it needs institutions to provide an environment in which the participant's individual interests are in agreement with desirable long-term and large-scale developments.
To achieve an efficient functionality it is thus necessary to
understand the behaviour of the economic system and the influence of
regulations on a global scale. Such a knowledge should underlie all
informed policy making.
In today's highly complex and interconnected world, it is simply no longer
feasible to proceed in a trial and error process. Billions of people may
suffer from failure of recognizing shortcomings of the system's ability to
perform the tasks it is designated to do. It is irresponsible to decide on
regulations of the economic and financial sector based on believes and rhetoric,
rather than well-founded arguments based on thorough investigations
and an objectively evaluated coherent body of knowledge. These are not
questions of political opinion, these are questions of scientific understanding.
At the Lightcone Institute we aim to support the development of freely available scientific models to allow the governing institutions to be able to adapt in a timely manner to economic developments, and to implement through regulations political decisions.
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Last Updated ( Friday, 24 October 2008 )
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