The Meaning of Open Systems

Abstract

Thinking about the economy in terms of systems has a long pedigree, but the terminology of openness and closure in economics is attracting increasing attention. It is apparent that these terms are being employed differently, not only between mainstream and non-mainstream economists but also within non-mainstream economics. The purpose of this chapter is to tease out these differences in meaning and, more important, the underlying methodological approaches which account for these differences. This exercise is offered as a contribution to clarifying the debate.

The concept of open systems appears increasingly frequently in the literature but, as with other concepts we have discussed, it has different meanings depending on the underlying approach. This chapter is an attempt to clarify some of the meanings given to open and closed systems, demonstrating that the distinction is not a dualistic one. Different understandings are possible, just as different responses are possible in the form of different approaches to theorising. As an indication that what is being discussed is not some dualistic mainstream/non-mainstream opposition, we focus on different understandings and applications of open systems within non-mainstream economics.