“A New Kind of Capitalism:” Panel Discussion with Pepperdine Faculty

Monday, August 23rd, 2010

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“We are living through extraordinary economic times; many of the accepted market conventions have disintegrated in the last two years. Is there a new kind of capitalism in our future and what are the most important areas of intervention?” This is the question that Davide Accomazzo, adjunct professor of finance, posed  to panelists Dr. Terry Young, professor of economics, Edward Fredericks, practitioner faculty of finance, and Linnea Bernard McCord, associate professor of business law, in “A New Kind of Capitalism,” a GBR-exclusive panel discussion.

Topics include:

  • Monetary Policy
  • Keynesian economics
  • Redesigning the banking system
  • Trade and currency imbalances
  • The United States’ relationship with China
  • Education
  • Ethics
  • The future of Capitalism

Become part of the conversation by clicking on the “Comment” link above or the “Leave a Reply” box below, and adding your valued opinion in the text box provided.



Topic: America's Financial Crisis, Videos
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Comments

Earl Mitchell

August 23, 2010 at 2:11 PM

Good panel. Thanks Dr. Accomazzo for moderating, and thanks panel members for joining in.

I would just like to point out how the title of this panel is interestingly (and I’m pretty sure accidentally) close to the title of a wonderful book that is, at least in an abstract way, very related to this discussion. I’m speaking of Stephen Wolfram’s ‘A New Kind of Science’ (see website link for the full text available for free online).

This book is a foray into all things bottom-up and/or computational. I don’t think complexity economics has really hit stride quite yet – which may be why it wasn’t mentioned in this discussion – but I believe that if we want to re-invent capitalism we must understand the atomic elements that drive modern economies forward. Using current (or should I say ‘legacy’) economics we really stand little chance at improving our system.

An understanding of complexity will push the informed listener to agree with Professor Mccord on the majority of these topics… The rise and perpetuation of all successful complex economies seems to be the direct result of trillions of individual interactions, where the individuals are following something like the Protestant rules of morality. I’m not religious at all – I’m simply pointing out a very reliable trend throughout history: as goes a nation’s moral code, so does the nation’s economy. Most notably, look at the Golden Age of Islam, and the way that entire people turned from unriveled prosperity to unbelievable destitution with a simple change in worldview from the rise of a new set of shared beliefs (beliefs still largely in effect today).

The conversation is really involved, but it suffices to say that there is no top-down regulation that can produce bottom-up cooperation. I would have liked to have heard names like Arrow or Axelrod crop up in the course of this discussion: these are the thinkers that are closest to capturing what has been unique about the American system of capitalism in the modern world (and all other successful economic systems throughout history).

Without understanding complexity we are doomed to continue on a path of top-down dictation on a system in which value can only be created from the bottom-up. Once we grasp the concept of complexity, it becomes pretty clear how dramatic a role individual morality (that’s the best word for it, but I dislike the normative baggage) plays in economic growth in a capitalist system.

Anyway – good work.

Mitch


Davide Accomazzo

August 26, 2010 at 7:58 AM

Hi Mitch, thanks for the thoughtful comment. You certainly find me in agreement on the need to understand behavioral and social complexities and also on a need for higher moral standards. There is no question that most productive societies have indeed succeeded thanks to a fair and clear legal/regulatory system and a sophisticated yet balanced and open economic system; you cannot achieve neither of those contingencies without a social moral compass. I have been writing for years on the need for an economic system built on quality over quantity…


Jerry Peck (P/KE-21)

August 27, 2010 at 2:29 AM

Complexity theory sees the Power Law in effect where most economists today are looking for a bell shaped curve to end this downturn. Complexity allows for that “large event” to happen in the long tail. I have to ask what “exactly” is going to drive future growth? Look at the demography of Europe – declining. Look at the U.S. Baby Bust following the Baby Boommers (retiring). Where are the consumers for housing, retail? How long can we borrow our way to prosperity? Let’s go back to basics and take another look at the facts.


Cursos Forex

September 25, 2010 at 3:28 AM

“Many of the accepted market conventions have disintegrated in the last two years. Is there a new kind of capitalism in our future?”
Anyone is knowing the economic future, but in this critical moment of financial crisis is necessarie to reinvent the actual finance world.


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