Nonlinear Dynamics of Financial Crises: How to Predict Discontinuous Decisions
By Ionut Purica
()
About this ebook
When just a handful of economists predicted the 2008 financial crisis, people should wonder how so many well educated people with enormous datasets and computing power can be so wrong. In this short book Ionut Purica joins a growing number of economists who explore the failings of mainstream economics and propose solutions developed in other disciplines, such as sociology and evolutionary biology. While it might be premature to call for a revolution, Dr. Purica echoes John Maynard Keynes in believing that economic ideas are "dangerous for good or evil." In recent years evil seems to have had the upper hand. "Nonlinear Dynamics of Financial Crises" points to their ability to do good.
- Makes complex economics ideas accessible by carefully explaining technical terms and minimizing mathematics and equations
- Delivers easily-understood perspectives about the global economy by constructing broad assumptions and conclusions in the face of its infinitely complexity
- Challenges received economic ideas by focusing on human behavior and the roles it plays in easily-observable recent trends and events
Ionut Purica
Prof.Ionut Purica is a corresponding member of the Academy of Romanian Scientists (AOSR), and a senior researcher in econophysics. He had worked in the World Bank, ENEA Rome and ICTP Trieste, Italy and RENEL Romania developing nonlinear models for energy systems development and economic decisions. He holds two PhDs: one in energy systems and the other in economics.
Related to Nonlinear Dynamics of Financial Crises
Related ebooks
Fractional Calculus and Fractional Processes with Applications to Financial Economics: Theory and Application Rating: 3 out of 5 stars3/5Handbook of Market Risk Rating: 4 out of 5 stars4/5Information Choice in Macroeconomics and Finance Rating: 3 out of 5 stars3/5Rules for International Monetary Stability: Past, Present, and Future Rating: 0 out of 5 stars0 ratingsA Primer for Financial Engineering: Financial Signal Processing and Electronic Trading Rating: 0 out of 5 stars0 ratingsThe Econometric Analysis of Network Data Rating: 0 out of 5 stars0 ratingsExtreme Events in Finance: A Handbook of Extreme Value Theory and its Applications Rating: 0 out of 5 stars0 ratingsHandbook of Heavy Tailed Distributions in Finance: Handbooks in Finance, Book 1 Rating: 3 out of 5 stars3/5Markov Models: An Introduction to Markov Models Rating: 3 out of 5 stars3/5Robustness Rating: 4 out of 5 stars4/5Noncooperative Approaches to the Theory of Perfect Competition Rating: 5 out of 5 stars5/5Some Modern Mathematics for Physicists and Other Outsiders: An Introduction to Algebra, Topology, and Functional Analysis Rating: 0 out of 5 stars0 ratingsDynamic Programming and Stochastic Control Rating: 3 out of 5 stars3/5Finance Constraints and the Theory of Money: Selected Papers Rating: 0 out of 5 stars0 ratingsRational Expectations and Economic Policy Rating: 0 out of 5 stars0 ratingsQuantitative Easing: The Great Central Bank Experiment Rating: 0 out of 5 stars0 ratingsDistributed Control of Robotic Networks: A Mathematical Approach to Motion Coordination Algorithms Rating: 5 out of 5 stars5/5Dynamic Programming and the Calculus of Variations Rating: 0 out of 5 stars0 ratingsThe Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy - Updated Edition Rating: 5 out of 5 stars5/5Dynamic Random Walks: Theory and Applications Rating: 0 out of 5 stars0 ratingsThe Hamiltonian Approach to Dynamic Economics Rating: 0 out of 5 stars0 ratingsHandbook of Monetary Economics Rating: 5 out of 5 stars5/5Cooperative and Graph Signal Processing: Principles and Applications Rating: 0 out of 5 stars0 ratingsStochastic Modeling: Analysis and Simulation Rating: 0 out of 5 stars0 ratingsIntroduction to Stochastic Dynamic Programming Rating: 0 out of 5 stars0 ratingsStrategic and Tactical Asset Allocation: An Integrated Approach Rating: 0 out of 5 stars0 ratingsFoundations of Statistical Mechanics: A Deductive Treatment Rating: 0 out of 5 stars0 ratingsForecasting Volatility in the Financial Markets Rating: 4 out of 5 stars4/5Stochastic Processes and Filtering Theory Rating: 0 out of 5 stars0 ratingsAlpha Machines: Inside the AI-Driven Future of Finance Rating: 0 out of 5 stars0 ratings
Banks & Banking For You
The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S&L Industry Rating: 4 out of 5 stars4/5The Bitcoin Standard: The Decentralized Alternative to Central Banking Rating: 4 out of 5 stars4/5Win In Court Every Time Rating: 5 out of 5 stars5/5The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance Rating: 5 out of 5 stars5/5A History of Central Banking and the Enslavement of Mankind Rating: 5 out of 5 stars5/5The Lords of Easy Money: How the Federal Reserve Broke the American Economy Rating: 4 out of 5 stars4/5Billion Dollar Whale: the bestselling investigation into the financial fraud of the century Rating: 4 out of 5 stars4/5Money Mischief: Episodes in Monetary History Rating: 4 out of 5 stars4/5The White Wall: How Big Finance Bankrupts Black America Rating: 3 out of 5 stars3/5God's Bankers: A History of Money and Power at the Vatican Rating: 4 out of 5 stars4/5Freedom from Tyranny Rating: 5 out of 5 stars5/5The SBA Loan Book: The Complete Guide to Getting Financial Help Through the Small Business Administration Rating: 5 out of 5 stars5/5The Power and Independence of the Federal Reserve Rating: 5 out of 5 stars5/5Delinquent: Inside America's Debt Machine Rating: 0 out of 5 stars0 ratingsThe Secrets of the Federal Reserve Rating: 5 out of 5 stars5/5Be Your Own Bank: Hidden in Plain Sight Rating: 0 out of 5 stars0 ratingsLehman Brothers: A crisis of value Rating: 5 out of 5 stars5/5The Silo Effect: The Peril of Expertise and the Promise of Breaking Down Barriers Rating: 4 out of 5 stars4/5The Anatomy of the Swipe: Making Money Move Rating: 5 out of 5 stars5/5How to Get a Business Loan Rating: 5 out of 5 stars5/5Your Score: An Insider's Secrets to Understanding, Controlling, and Protecting Your Credit Score Rating: 5 out of 5 stars5/5Investment Banking For Dummies Rating: 0 out of 5 stars0 ratingsHow the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy Rating: 4 out of 5 stars4/5Straight to Hell: True Tales of Deviance, Debauchery, and Billion-Dollar Deals Rating: 5 out of 5 stars5/5Heaven's Bankers: Inside the Hidden World of Islamic Finance Rating: 0 out of 5 stars0 ratingsLucifer's Banker Uncensored: The Untold Story of How I Destroyed Swiss Bank Secrecy Rating: 5 out of 5 stars5/5Insider's Guide to Fixed Income Securities & Markets Rating: 5 out of 5 stars5/5Principles of Economics Rating: 0 out of 5 stars0 ratings
Reviews for Nonlinear Dynamics of Financial Crises
0 ratings0 reviews
Book preview
Nonlinear Dynamics of Financial Crises - Ionut Purica
book.
Chapter 1
Introduction
Keywords
Limits; crises; complex behavior
This chapter reviews some ideas on limits, crises, complex behavior, and local versus global perception that serve to create the necessary state of mind (memes in Dawkins terminology) to make the reader curious about the rest of the book.
In November 1997 the financial crisis of that time had already started in Mexico and the Asian Tigers were having problems. Moreover, Russia was entering the crisis situation too. The bifurcation related to the change from one state to the other—in the case of stock exchange, from sell
to buy
is an indication of a change in the traders’ collective behavior that is triggered by small changes of perceived parameters’ evolution. The euphoria of a seemingly endless exponential growth of some financial instruments is replaced suddenly by the sorrow of a saturation followed by abandoning the allocation of money to some instruments and the shift toward others.
There is an important message here that is the fact that people have in their minds some given states and external information is almost unconsciously interpreted as either going toward one or the other, without anything in between. This behavior is produced by some entities of the mind having similar properties with genes whose conceptualization had been done by Dawkins who also coined the name meme
for