Resiliency comes from more risk of bank failure, not less

Lynne Kiesling In the always-smart-and-interesting City AM paper from London, Anthony Evans makes an important argument that has been overlooked in financial regulation debates: risk of failure is what creates system resilience, and regulation creates brittle monocultures. He writes in the context of last week’s Independent Commission on Banking (ICB) recommendations for creating regulatory divisions … More Resiliency comes from more risk of bank failure, not less

David Warsh on complexity and economics

Lynne Kiesling David Warsh’s Economic Principals column this week is about complexity, and the study of complexity in economics. It is as informative and insightful as Warsh’s columns usually are, despite its selective coverage. He highlights some ideas that I think are important for the future direction of economics — the isolation of the twin … More David Warsh on complexity and economics

Emergent orders are all around us, especially in cities

Lynne Kiesling Ron Bailey’s Hit & Run post, Ant Hills=Brains=Cities, reminded me of some really important, fundamental ideas that tend to get lost as we natter about financial regulation, health care regulation, climate regulation … Emergent orders abound, and occur at all sorts of different scales — molecular, cellular, all the way to complex social … More Emergent orders are all around us, especially in cities

Resilience, sustainability, and loosely-coupled systems

Lynne Kiesling The NIST smart grid interoperability roadmap workshop I attended last week has gotten me thinking about the similarities between system architecture (as the computer systems folks call it) and institutional design (as we political economy social scientists call it). Of course there’s quite a bit of similarity, as the work of the GridWise … More Resilience, sustainability, and loosely-coupled systems

Peer-to-peer power through microgrids

Lynne Kiesling When we think of concepts like peer-to-peer networks and disintermediation, we usually think of industries that are very Internet-centric. But these concepts can, should, and will apply in electric power networks too: smart grid technology enables peer-to-peer power. The study referenced in that BBC article analyzes the potential for microgrids, and argues that … More Peer-to-peer power through microgrids

Smart grid, complexity, and swarm logic

Lynne Kiesling One of the recurring themes here at KP is that smart grid technology makes it possible to harness distributed intelligence in the electric power network, and when you couple that network of distributed intelligence with a decentralized flow of information (such as price signals and market processes), you can get reliability through decentralized … More Smart grid, complexity, and swarm logic