Networks and webs in ecosystems and financial systems

Abstract

This paper briefly outlines our growing understanding of the relationships between the network structure of ecological networks—both in mathematical models and in the real world—and their consequent dynamical properties. These are interesting, inter alia, because they affect the system’s ability to withstand disturbance, whether natural or human-created. The paper also sketches recent interest in the potential relevance of this work to ‘systemic risk’ and regulatory measures in banking systems, emphasizing the similarities and differences. I conclude with some cautions against drawing excessively general conclusions from any such models.