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Simply An Unintended Consequence Of Innovation, Peter Cebon
Simply An Unintended Consequence Of Innovation, Peter Cebon
Peter Cebon
This Op-Ed argues that the financial meltdown can be understood as an example of a systems accident, as first described by Charles Perrow. Innovations in the financial system increased interactive complexity, increased coupling, and increased the extent of mis-matches between the financial system in reality and the financial system that the regulators thought they were regulating.