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Opinion

Nature 460, 685-686 (6 August 2009) | doi:10.1038/460685a; Published online 5 August 2009

Open Innovation Challenges

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The economy needs agent-based modelling

J. Doyne Farmer1 & Duncan Foley2

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The leaders of the world are flying the economy by the seat of their pants, say J. Doyne Farmer and Duncan Foley. There is, however, a better way to help guide financial policies.

In today's high-tech age, one naturally assumes that US President Barack Obama's economic team and its international counterparts are using sophisticated quantitative computer models to guide us out of the current economic crisis. They are not.