Ping Chen is a Professor at the National School of Development at Peking University in Beijing, and a Senior Fellow at Center for New Political Economy at Fudan University in Shanghai, China.

‘The book is a collection of Professor Chen’s twenty plus years of original and provocative work on macroeconomics. He has questioned the empirical validity of rational expectation theory’s micro foundation and attempted to provide an alternative formulation based on complexity science and evolution theory. The book is a valuable contribution to macroeconomics and timely input to the understanding of and debate on current global crisis.’- Justin Yifu Lin, Chief economist and Senior Vice President, The World Bank, USA‘Ping Chen, a disciple of Prigogine, is an original voice from China, well worth listening to.’- George Soros, Soros Fund Management LLC, USA

• 1. Introduction Part 1 Methodological review: economic complexity, equilibrium illusion, and evolutionary dynamics 2. Equilibrium illusion, economic complexity, and evolutionary foundation of economic analysis (2008) 3. Evolutionary economic dynamics: persistent business cycles, disruptive technology, and the trade-off between stability and complexity (2005) Part 2 Macro vitality: trend-cycle separation, economic chaos and persistent cycles 4. Empirical and Theoretical Evidence of Economic Chaos (1988) 5. Searching for Economic Chaos: A Challenge to Econometric Practice and Nonlinear Tests (1993) 6. A Random Walk or Color Chaos on the Stock Market? - Time-Frequency Analysis of S&P Indexes (1996) 7. Trends, Shocks, Persistent Cycles in Evolving Economy: Business Cycle Measurement in Time-Frequency Representation (1996) Part 3 Micro interaction and population dynamics: learning, communication, and market share competition 8. Origin of Division of Labor and Stochastic Mechanism of Differentiation (1987) 9. Imitation, Learning, and Communication: Central or Polarized Patterns in Collective Actions (1991) 10. Needham's Question and China's Evolution - Cases of Nonequilibrium Social Transition (1990) 11. China's Challenge to Economic Orthodoxy: Asian Reform as an Evolutionary, Self-Organizing Process (1993) Part 4 Equilibrium illusion and meso foundation: perpetual motion machine, representative agents, and organization diversity 12. The Frisch Model of Business Cycles - A Spurious Doctrine, but a Mysterious Success (1999) 13. Microfoundations of Macroeconomic Fluctuations and the Laws of Probability Theory: the Principle of Large Numbers vs. Rational Expectations Arbitrage (2002) 14. Complexity of Transaction Costs and Evolution of Corporate Governance (2007) Part 5 Market instability, natural experiments, and government policy 15. Market Instability and Economic Complexity: Theoretical Lessons from Transition Experiments (2006) 16. From an Efficient to a Viable International Financial Market (2009) Epilogue

Ping Chen is a Professor at the National School of Development at Peking University in Beijing, and a Senior Fellow at Center for New Political Economy at Fudan University in Shanghai, China.

‘The book is a collection of Professor Chen’s twenty plus years of original and provocative work on macroeconomics. He has questioned the empirical validity of rational expectation theory’s micro foundation and attempted to provide an alternative formulation based on complexity science and evolution theory. The book is a valuable contribution to macroeconomics and timely input to the understanding of and debate on current global crisis.’- Justin Yifu Lin, Chief economist and Senior Vice President, The World Bank, USA‘Ping Chen, a disciple of Prigogine, is an original voice from China, well worth listening to.’- George Soros, Soros Fund Management LLC, USA

• 1. Introduction Part 1 Methodological review: economic complexity, equilibrium illusion, and evolutionary dynamics 2. Equilibrium illusion, economic complexity, and evolutionary foundation of economic analysis (2008) 3. Evolutionary economic dynamics: persistent business cycles, disruptive technology, and the trade-off between stability and complexity (2005) Part 2 Macro vitality: trend-cycle separation, economic chaos and persistent cycles 4. Empirical and Theoretical Evidence of Economic Chaos (1988) 5. Searching for Economic Chaos: A Challenge to Econometric Practice and Nonlinear Tests (1993) 6. A Random Walk or Color Chaos on the Stock Market? - Time-Frequency Analysis of S&P Indexes (1996) 7. Trends, Shocks, Persistent Cycles in Evolving Economy: Business Cycle Measurement in Time-Frequency Representation (1996) Part 3 Micro interaction and population dynamics: learning, communication, and market share competition 8. Origin of Division of Labor and Stochastic Mechanism of Differentiation (1987) 9. Imitation, Learning, and Communication: Central or Polarized Patterns in Collective Actions (1991) 10. Needham's Question and China's Evolution - Cases of Nonequilibrium Social Transition (1990) 11. China's Challenge to Economic Orthodoxy: Asian Reform as an Evolutionary, Self-Organizing Process (1993) Part 4 Equilibrium illusion and meso foundation: perpetual motion machine, representative agents, and organization diversity 12. The Frisch Model of Business Cycles - A Spurious Doctrine, but a Mysterious Success (1999) 13. Microfoundations of Macroeconomic Fluctuations and the Laws of Probability Theory: the Principle of Large Numbers vs. Rational Expectations Arbitrage (2002) 14. Complexity of Transaction Costs and Evolution of Corporate Governance (2007) Part 5 Market instability, natural experiments, and government policy 15. Market Instability and Economic Complexity: Theoretical Lessons from Transition Experiments (2006) 16. From an Efficient to a Viable International Financial Market (2009) Epilogue

Ping Chen is a Professor at the National School of Development at Peking University in Beijing, and a Senior Fellow at Center for New Political Economy at Fudan University in Shanghai, China.

‘The book is a collection of Professor Chen’s twenty plus years of original and provocative work on macroeconomics. He has questioned the empirical validity of rational expectation theory’s micro foundation and attempted to provide an alternative formulation based on complexity science and evolution theory. The book is a valuable contribution to macroeconomics and timely input to the understanding of and debate on current global crisis.’- Justin Yifu Lin, Chief economist and Senior Vice President, The World Bank, USA‘Ping Chen, a disciple of Prigogine, is an original voice from China, well worth listening to.’- George Soros, Soros Fund Management LLC, USA

• 1. Introduction Part 1 Methodological review: economic complexity, equilibrium illusion, and evolutionary dynamics 2. Equilibrium illusion, economic complexity, and evolutionary foundation of economic analysis (2008) 3. Evolutionary economic dynamics: persistent business cycles, disruptive technology, and the trade-off between stability and complexity (2005) Part 2 Macro vitality: trend-cycle separation, economic chaos and persistent cycles 4. Empirical and Theoretical Evidence of Economic Chaos (1988) 5. Searching for Economic Chaos: A Challenge to Econometric Practice and Nonlinear Tests (1993) 6. A Random Walk or Color Chaos on the Stock Market? - Time-Frequency Analysis of S&P Indexes (1996) 7. Trends, Shocks, Persistent Cycles in Evolving Economy: Business Cycle Measurement in Time-Frequency Representation (1996) Part 3 Micro interaction and population dynamics: learning, communication, and market share competition 8. Origin of Division of Labor and Stochastic Mechanism of Differentiation (1987) 9. Imitation, Learning, and Communication: Central or Polarized Patterns in Collective Actions (1991) 10. Needham's Question and China's Evolution - Cases of Nonequilibrium Social Transition (1990) 11. China's Challenge to Economic Orthodoxy: Asian Reform as an Evolutionary, Self-Organizing Process (1993) Part 4 Equilibrium illusion and meso foundation: perpetual motion machine, representative agents, and organization diversity 12. The Frisch Model of Business Cycles - A Spurious Doctrine, but a Mysterious Success (1999) 13. Microfoundations of Macroeconomic Fluctuations and the Laws of Probability Theory: the Principle of Large Numbers vs. Rational Expectations Arbitrage (2002) 14. Complexity of Transaction Costs and Evolution of Corporate Governance (2007) Part 5 Market instability, natural experiments, and government policy 15. Market Instability and Economic Complexity: Theoretical Lessons from Transition Experiments (2006) 16. From an Efficient to a Viable International Financial Market (2009) Epilogue