Forget macro and micro, it’s mesoeconomics that matters

Forget macro and micro, it’s mesoeconomics that matters

Mesoeconomics is the new buzzword in the economic world, and it’s making a big impact. Instead of focusing solely on #macro and micro levels, understanding the intricacies of networks is key to truly understanding how the economy functions.

Thanks to Big Data, economists now have access to detailed information on business networks in real time. This allows for a more mathematical approach, using concepts from graph theory to analyze inter-firm relationships.

Gone are the days of economists making diagnoses based on surface-level observations. Now, they are delving deep into networks to uncover pricing pressures, innovation, and other key factors affecting the economy.

The Bank for International Settlements and the IMF are both exploring global value chains using mesoeconomics. Even the use of cloud computing by banks is being scrutinized through this lens, revealing new vulnerabilities and bottlenecks in the system.

Source: https://on.ft.com/44WVmsz