What do economic chaos and uncertainties mean in rational or irrational economic theories? How do simple deterministic interactions among a few variables lead to unpredictable complex phenomena? Why is complexity of economies causing so many conflicts and confusions worldwide?This book provides a comprehensive introduction to recent developments of complexity theory in economics. It presents different models based on well-accepted economic mechanisms such as the Solow model, Ramsey model, and Lucas model. It is focused on presenting complex behaviors, such as business cycles, aperiodic motion, bifurcations, catastrophes, chaos, and hidden attractors, in basic economic models with nonlinear behavior. It shows how complex nonlinear phenomena are identified from various economic mechanisms and theories. These models demonstrate that the traditional or dominant economic views on evolution of, for instance, capitalism market, free competition, or Keynesian economics, are not generally valid. Markets are unpredictable and nobody knows with certainty the consequences of policies or other external factors in economic systems with simple interactions.Key FeaturesThe book is unique in that it presents a systematical introduction to recent developments in complexity theory in economicsIt provides an easy way, with a large number of graphs and plots by simulation rather than by mathematical proofs, for easy understanding on essential economic mechanisms and complex phenomena in nonlinear economic theoryIt shows how different economic mechanisms, such as Marxian, Keynesian, and Adam Smith’s theories, can lead to complex and unpredictable economic phenomenaIt also points out multiple directions for further developments on nonlinear economic theory

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