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Mathematical model of the economic trend

Krouglov, Alexei (2016): Mathematical model of the economic trend.

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Abstract

Presented here is a simplified mathematical model to reflect a weak recovery after the financial crisis. The model confirms hypothesis that the weak recovery is caused by a decline in investment not compensated by the interest rate decrease. The model explains a transformation of economic trend lines. Graphical representation shows how the transformation of economic trend occurs either with or without fluctuations of short-time variations. The graphical representation agrees with practically observable tendencies.

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