Mathematical model of the Greek crisis

Krouglov, Alexei (2015): Mathematical model of the Greek crisis.

Abstract

Presented is a simplified mathematical model of the Greek economy with a reduced description of different stages of the current Greek crisis. Explored are conditions where a stream of investments can pull economy from the crisis. It has been theoretically proven that an investment in the benign conditions where demand is sustained produces higher nominal economic growth than an investment in the austere conditions where demand is cut.

• Item Type: MPRA Paper
• Language: English
• Keywords: Greek crisis; investment; modeling
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; 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.

Krouglov, Alexei, 2014, “Secular Stagnation and Decline: A Simplified Model.” Available at SSRN: http://ssrn.com/abstract=2540408 or http://dx.doi.org/10.2139/ssrn.2540408.

Krouglov, Alexei, 2015a, “Credit Expansion and Contraction: A Simplified Model.” Available at SSRN: http://ssrn.com/abstract=2604176 or http://dx.doi.org/10.2139/ssrn.2604176.

Krouglov, Alexei, 2015b, “Economic Growth and Debt: A Simplified Model.” Available at SSRN: http://ssrn.com/abstract=2621227 or http://dx.doi.org/10.2139/ssrn.2621227.

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