Understanding Chaos as an Indicator of Economic Stability

2016 ◽  
pp. 353-372 ◽  
Author(s):  
Rohnn B Sanderson
Keyword(s):  
Brownian Motion ◽  
Business Cycles ◽  
Natural Disaster ◽  
Government Policy ◽  
Economic Systems ◽  
Economic Stability ◽  
Financial Systems ◽  
Financial Products ◽  
Modern Economic ◽  
Dynamic Phenomena

With what appears to be the increasing sensitivity of economic/financial systems to various events, whether they be natural disaster, changing financial products or government policy, the need to understand how volatility has changed in modern economic systems and how to recognize when volatility will occur is a topic that is extremely important. This topic has been categorized under various topics such as: business cycles, chaos, dynamic systems, fractals, Brownian motion and super cycles just to name a few. The author believes that all of these areas need to be considered at once when analyzing dynamic phenomena which may have varying degrees of the aforementioned. This chapter will implement a Hicksian Accelerator to develop a framework for stylized facts of general dynamic macroeconomic behavior. The chapter will then implement the model and begin the process of estimating the degree of and sensitivity to volatility in a macro economy.

scholarly journals Financial Innovation: A Permanent Agenda in Finance

2017 ◽  
Vol 1 (3) ◽  
Author(s):  
Wesley Mendes-Da-Silva
Keyword(s):  
Financial Market ◽  
Financial Innovation ◽  
The United States ◽  
Economic Stability ◽  
Financial Systems ◽  
Policy Makers ◽  
Financial Products ◽  
Different Types ◽  
Technology Market ◽  
New Challenges

The Journal of Financial Innovation (JoFI), which is totally independent and completely free to anyone who is interested in reading it, has been establishing itself as one of the first periodicals dedicated to financial innovation, a subject that has been growing in importance in various spheres of interest, from academia to industry, including policy makers. Economic stability and growth are closely linked to financial innovation in its various formats, i.e. products, processes and financial institutions.At the end of the 1980s the financial market in the United States and its institutions were facing changes that were seen as revolutionary at the time. In other words, at that particular moment in time we witnessed the rise of financial instruments and institutions that did not even exist at the end of the 1970s. As Mishkin (1990) points out, there is still an interest in understanding better the dynamic of the changes in financial systems and the proliferation of financial products. In this regard, the forces behind financial innovation are increasing in relevance. These include the conditions required for changes in the market, advances in technology, market (de)regulation, different types of crisis that are relevant to the market, new challenges facing banks, and other such matters.

scholarly journals DIGITAL FINANCIAL TECHNOLOGIES MARKET: CHALLENGES AND THREATS OF THE GLOBAL FINANCIAL SECURITY

2020 ◽  
Author(s):  
N.N. Reshetnikova ◽  
◽  
M.G. Magomedov ◽  
Keyword(s):  
The Other ◽  
Economic Systems ◽  
Financial Security ◽  
Innovative Development ◽  
Economic Stability ◽  
Legal Definition ◽  
Modern Economic ◽  
The One ◽  
Digital Assets

The paper analyzes the digital financial technologies development under condition of the globalization. The main subjects of the digital financial technologies market are identified, and their essential characteristics are determined. The authors of the article come to the conclusion that the digitalization of the economy, on the one hand, is the basis for the modern economic systems innovative development, on the other, it creates new threats and risks for global and national financial security. The application of measures for the formation of a model of long-term financial and economic stability and security of the country, including the legal definition, regulation, and use of digital assets at the international and state levels, is proposed.

Institutions as the Ordering Factor and as the Destabilizing Force: New Institutional and Post Keynesian Perspectives

2006 ◽  
pp. 102-118 ◽  
Author(s):  
A. Skorobogatov
Keyword(s):  
Economic Policy ◽  
Business Cycles ◽  
Institutional Theory ◽  
Institutional Environment ◽  
Institutional Arrangements ◽  
Economic Stability ◽  
Forward Contracts

The paper is dedicated to the New Institutional and Post Keynesian perspectives on institutions and their relation to economic stability. Embeddedness, institutional environment, and institutional arrangements are considered. Within these institutions conventional expectations, the economic policy and forward contracts are analyzed. Upon these perspectives the author shows a contradictory relation between institutions and the order and develops an institutional theory of business cycles.

scholarly journals ECONOMIC INSTITUTIONS - ANCHOR OR TOWBOAT FOR ECONOMY?

2016 ◽  
Vol 2016 (3) ◽  
pp. 270-276 ◽  
Author(s):  
Владимир Евенко ◽  
Vladimir Evenko ◽  
Вадим Солдатенков ◽  
Vadim Soldatenkov
Keyword(s):  
National Economy ◽  
Economic Systems ◽  
Equal Rights ◽  
State Sector ◽  
Industrial Enterprises ◽  
Social Interests ◽  
Institu Tions ◽  
Modern Economic ◽  
Advanced Development

Modern economic institutes, in particular, insti-tutes of stateprivate partnership and insolvency and their influence upon ensuring a stable qualitative de-velopment of national economy are under consideration. Institutes come out as fundamental factors of functioning economic systems in long-term and me-dium-term prospects. Market forces cannot function efficiently in inadequate and uncontrollable environ-ment inasmuch as the operation of such forces is contradictory and frequently couterproductive. Under a stateprivate partnership is understood a system of relations between a state sector (state or municipal authorities) and a private sector (business) legally and institutionally secured with the purpose of the development of socially and strategically meaningful branches of national economy to protect social interests and to increase competitiveness of industrial enterprises at the heart of which underlying principles of equal rights, rational partnership, distribution of risks and proceeds, joint operations of state and private sectors. The institution of insolvency (bankruptcy) is one of the most complicated institutions of market (mixed) economy as it combines in itself the compo-nents of cost-effectiveness and social trend. Russia must have effective economic institu-tions including those of state-private partnership and insolvency (bankruptcy) for the transition from a model of an overtaking growth to the model of advanced development.

Role of Financial Innovations in Proliferation of Economic Instability

2011 ◽  
pp. 56-64
Author(s):  
I. Strelets ◽  
M. Stolbov
Keyword(s):  
Financial Market ◽  
Business Processes ◽  
New Drugs ◽  
Social Progress ◽  
Economic Stability ◽  
Economic Issues ◽  
Financial Innovations ◽  
Financial Products ◽  
The Impact

The authors consider the impact of financial innovations on the macroeconomic situation. The increasing complexity of financial market instruments is the way to decrease its transparency and, consequently, the overall economic stability. The global crisis of 2008-2009 demonstrated the relevance of this problem. However, the authors believe that the nations can take advantage of new financial products, technologies and business processes if the regulators manage to fully track and timely offset the accompanying risks. It is important that execution of the financial innovations correspond with the structure of the funding companies and banks. It is concluded that adequate regulation of financial innovation will allow better use of their potential in order to address a number of important economic issues. In particular, it may help to accelerate the development and introduction of new drugs, to the implementation of environmental projects, the financing of social progress in the developing countries for achieving the Millennium Goals proclaimed by the UN in 2000.

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