Predator-Prey Economics

Too Long; Didn't Read

<em>If Predator-Prey Economics existed as a field of study, it would address human economic interactions from the perspective of </em><a href="https://books.google.com/books?hl=en&amp;lr=&amp;id=Xu-H0ClCHN8C&amp;oi=fnd&amp;pg=PR5&amp;dq=Evolutionary+Games+and+Population+Dynamics+by+Josef+Hofbauer+and+Karl+Sigmund.&amp;ots=EVUGogzT8f&amp;sig=uSuOiBz52ZnbiRggyWfEbofT0Lc#v=onepage&amp;q&amp;f=false" target="_blank"><em>Resource Competition Dynamics</em></a><em>. </em><a href="http://www.tiem.utk.edu/~gross/bioed/bealsmodules/predator-prey.html" target="_blank"><em>Predator-Prey</em></a><em> dynamics have been applied since at least 1967 to </em><a href="https://en.wikipedia.org/wiki/Goodwin_model_%28economics%29" target="_blank"><em>model </em></a><em>the growth cycle and later, Debt vs Capital, its most intuitive use, considering the former feeds on the latter to survive. This use of the model is even more relevant when interest from Debt accrues at a greater Internal Rate of Return (IRR) than recurring income from Capital. In this case, their “predator-prey” dynamics produce an </em><a href="https://www.ma.utexas.edu/users/davis/375/popecol/lec9/equilib.html" target="_blank"><em>unstable</em></a><em> feedback system. This is precisely the outcome that </em><a href="http://www.bis.org/publ/work456.pdf" target="_blank"><em>Graph </em></a><em>1 conveys and that Hyman Minsky’s 1985 </em><a href="http://www.levyinstitute.org/pubs/wp74.pdf" target="_blank"><em>Financial Instability Hypothesis</em></a><em> foresaw: The leverage to income ratio grows exponentially in a wave of ever larger amplitude. Yet, in a world run by hard-core Keynesians (not </em><a href="https://www.cnbc.com/id/46896156" target="_blank"><em>Post-Keynesian</em></a><em>s!), it’s only fitting that neither the chart showcasing every stage of our generation’s super-Minsky cycle nor its dire prognosis for the future, shall surface until our true </em><a href="https://en.wikipedia.org/wiki/Minsky_moment" target="_blank"><em>Minsky Moment</em></a><em> arrives.</em>