Written by Carlos Antonio Sánchez / Translation by Carlos López Natarén
Complex systems can offer information deep enough to create policies in order to prevent economical crises.
Stefano Battiston, professor of the Department of Banking and Finance from the University of Zurich, studies complex networks applied in economy.
During his talk “Price of Complexity and Complexity of Price in Financial Neworks” at the Conference on Complex Systems, held this week in Cancun, Mexico, Battiston proposed to deepen the study of how business models of financial institutions work to create future plans and solutions before economic crises.
What we can learn from networks science is to make a financial systems resistant, able to serve society in better ways. Battiston indicates that the right way to prevent financial problems is to build institutions environmentally and socially responsable.
The researcher detailed that when financial institutions create networks and contracts among them, without an external agent, there is a higher probability for them to avoid accomplishing those contracts. These institutions can lead to financial problems that eventually would impact society.
That is why it is vey important to discuss and develop science to understand financial networks. “We need more complex science focused on finance”, he said.