nonlinear economics

Nonlinear economics explores how economic systems do not always follow straight, predictable patterns. Instead, small changes can sometimes cause large, unexpected effects due to complex interactions within markets or policies. It recognizes that economic relationships are often interconnected and can exhibit feedback loops, tipping points, or sudden shifts, making outcomes uncertain and difficult to forecast with traditional linear models. This approach helps better understand real-world complexities, such as financial crises or market bubbles, emphasizing that cause and effect are not always directly proportional.