SELF-ORGANIZED CRITICALITY AND ECONOMIC CRISES

The conventional economic science appears to have ignored some important phenomena of economic systems by treating them as ex- ceptions { namely the destructive phenomena. Relying on various widely accepted models and theories that practically avoid the occurrence of fail- ures, depressions, crises and crashes, the economic science is incomplete and clearly needs a major reorientation and a change of focus from the deterministic to the holistic perspective. This paper is primarily oriented on discovering and understanding the destructive phenomena in economic systems through the paradigm of com- plex systems. Introducing a new economic model based on a connective structure borrowed from neurosciences, interesting behaviour is emerging even for a very simplistic economic system like a distribution network. A new cause for the apparition of economic crises which is unconventional and totally dierent from the common views is identied and brought to light.