Simplified mathematical model of financial crisis

Krouglov, Alexei (2013): Simplified mathematical model of financial crisis.

Abstract

The framework of mathematical dynamics of economic systems is applied to the development of financial crisis. A view is proposed that the severity of financial crises can be explained by means of superposition of the fluctuations on connected markets exhibited in the form of a resonance phenomenon. The practical actions of the central banks are criticized as contradicting to theoretical implications of the model.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial crisis; business fluctuations
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G0 - General > G01 - Financial Crises

References

Krouglov, Alexei, 2006, Mathematical Dynamics of Economic Markets (New York: Nova Science Publishers).

Krouglov, Alexei, 2009, “Mathematical Dynamics of Economic Growth as Effect of Internal Savings,” Finance India, Vol. 23, No. 1, pp. 99-136.

Petrovski, Ivan G., 1966, Ordinary Differential Equations (Englewoods Cliffs, New Jersey: Prentice Hall).

Piskunov, Nikolai S, 1965, Differential and Integral Calculus (Groningen: P. Noordhoff).