Jay Forrester's operational approach to economics

Abstract

Jay Forrester's models evoke an operational approach to understanding economic behavior and managing economic systems. They build on managerial roles, not rational agency embedded in mainstream models of economic theory. Forrester's models can therefore be easily tied to policies that relate to everyday decisions. His writings provide deep insights that can be effectively applied to managing firms, regions, nations and the global economic system. This paper discusses Forrester's approach to addressing economic problems, and how it calls for rethinking the practice of economics.