Macro and microscopic modeling of financial markets——sailing from financial tsunami and market risks

Financial markets are complex systems, where crises of large fluctuations with high risks take place more than often. However, classical economics is unable to handle these situations. From a complexity science perspective, we present a picture of the evolution and burst of financial bubbles for the current financial tsunami based on the macroscopic modeling of financial markets. We further introduce a framework of computational experimental finance based on the microscopic modeling of markets. We argue that finance should be rebuilt resorting to a phenomenology framework, and econophysics will play a crucial role in this scientific revolution of economics.