China and global finance – transformations of a complex system

The talk will compare three views on how the rise of China may change the global financial system and ask how complexity research may contribute to this important debate. The three views are:
1) The perspective outlined by the governor of the people’s bank of China, Zhou Xiaochuan, as an answer to the global financial crisis of 2007, an answer advocating far-reaching transformations of the global financial system.
2) The perspective of Keynesian economists like Paul Krugman (whose thoughts in this regard are probably shared by the current leaders of the American and European central banks) who don’t see a need for far-reaching transformations.
3) The perspective of a diverse set of economists (including Roger Farmer, Robert Shiller and others) who emphasize the need for specific innovations to stabilize the global financial system.
The possible contribution of complexity research will be discussed in view of attempts to use the May-Wigner theorem to improve global financial regulation.