Is Economics Ready for a New Model?

Harvard Business Review

Economic theories based on rational behavior have been called into doubt by recent events. If you want to learn about the subject, in fact, Hector's article is probably better — it's clearer in its descriptions of the relevant theories. The conviction spread that, thanks in part to financial innovation, the world's developed economies had become more resilient even as financial markets became more volatile. The other big idea in the 1988 article was chaos theory.