Mathematical model of the economic trend

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic trend; investment; weak recovery
• 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; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects

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, 99-136.

Krouglov, Alexei (2013). Simplified Mathematical Model of Financial Crisis. Journal of Advanced Studies in Finance, Vol. IV, No. 2 (8), 109-114.

Krouglov, Alexei (2014a). Monetary Part of Abenomics: A Simplified Model. Available at SSRN: http://ssrn.com/abstract=2390372 or http://dx.doi.org/10.2139/ssrn.2390372.

Krouglov, Alexei (2014b). 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.

Krouglov, Alexei (2015c). Mathematical Model of the Greek Crisis. Available at SSRN: https://ssrn.com/abstract=2644493 or http://dx.doi.org/10.2139/ssrn.2644493.

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

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