Abstract
This chapter studies the problem that when the control-theory model of an economic system is established with the parameters determined, how can one design the corresponding economic policy that is based on feedback of the system so that the performance indicator would approach the pre-determined objective. By identifying the “invisible hand” that adjusts the economic market automatically as the feedback controller that regulates the economy’s supply and demand, this chapter focuses on the design of feedback controls that could withstand disturbances of the environment. This chapter establishes a feedback control model for the economic system, provides proofs for how well this proposed control method could perform in practice, and expands this method to design the linear multivariable feedback control and the feedback control of discrete variables.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Chow GC (1975) Analysis and control of dynamic economic systems. Wiley, New York
Chow GC (1976) Control methods for macroeconomic policy analysis. J Am Econ Assoc 66:340–345
Diehl M, Amrit R, Rawlings JB (2011) A Lyapunov function for economic optimizing model predictive control. IEEE Trans Autom Control 56(3m):703–707
Ellis M, Zhang J, Liu J et al (2014) Robust moving horizon estimation based output feedback economic model predictive control. Syst Control Lett 68:101–109
Heidarinejad M, Liu J, Christofides PD (2012) State-estimation based economic model predictive control of nonlinear systems. Syst Control Lett 61(9):926–935
Hu GY, Hu AG (2005) Application of the state variable control theory to regional economic policy adjustment and control. J Tsinghua Univ (Science and Technology edition) 45(9):1273–1276
Kendrick DA (1981) Stochastic control for economic models. McGraw-Hill, New York
Kydland FE, Prescott EC (1980) Dynamic optimal taxation, rational expectations and optimal control. J Econ Dyn Control (2):79–91
McKinnon RI (1993) The order of economic liberalization: financial control in the transition to a market economy. Johns Hopkins University Press, Baltimore
Moe TM (1985) Control and feedback in economic regulation: the case of the NLRB. Am Polit Sci Rev 79(04):1094–1116
Pindyck RS (1977) Optimal economic stabilization policies under decentralized control and conflicting objectives. IEEE Trans Autom Control 2:517–530
Seierstad A, Sydsaeter K (1986) Optimal control theory with economic applications. Elsevier, North Holland
Shefrin HM, Thaler RH (1981) An economic theory of self-control. J Polit Econ 89(2):392–406
Wang ZS, Wang DB (2006) Optimal control with ideal control strategy and expected trajectory. Control Decis 21(1):100–103
Wu JL, Liu F (2004) Control and decision model of macro-economy movement. Control Decis 19(5):550–553
Xiao DR, Lu ZY (2002) Analysis of macroeconomic system using robust control theory. Control Decis 17(5):629–630
Yang F, Zhang QL, Zhai D (2004) Optimal control of dynamic economic systems with state constraint. Journal of Northeastern University 254(5):475–477
Yao HX, Sheng ZH (2002) Improved method for feedback control in economic chaotic model. J Syst Eng 17(6):507–511
Acknowledgement
This research was partially supported by the National Natural Science Foundation of China (71301064) and Ministry of Education Humanities and Social Science Foundation of China (12YJC630262).
Author information
Authors and Affiliations
Corresponding authors
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG
About this chapter
Cite this chapter
Forrest, J.YL., Ying, Y., Gong, Z., Yang, B., Baizako, S., Ryskulovich, O.A. (2018). Self-Defense Based on Feedback Mechanism. In: Currency Wars. Contemporary Systems Thinking. Springer, Cham. https://doi.org/10.1007/978-3-319-67765-1_13
Download citation
DOI: https://doi.org/10.1007/978-3-319-67765-1_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-67764-4
Online ISBN: 978-3-319-67765-1
eBook Packages: Business and ManagementBusiness and Management (R0)