Abstract
This chapter investigates when a large amount of capital flows suddenly to or away from a particular economy and how the consequent economic shocks can be minimized by employing feedback controls while the desirable economic growth can still be on track. By employing the method of the state and/or output feedbacks of control theory, this chapter explores how to practically design mechanisms based on the concepts of state and/or output feedbacks. In particular, this chapter presents a method of designing economically stabilizing strategies when the economic system suffers from external shocks by employing output feedback and Lyapunov feedback control.
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Acknowledgement
This research was partially supported by the National Natural Science Foundation of China (71601085; 71571119), the Natural Science Foundation of Hubei Province (2016CFB294), and the Project funded by China Postdoctoral Science Foundation (2016M601808).
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Forrest, J.YL., Ying, Y., Gong, Z., Guo, H., Guo, J., Larson, S. (2018). Design Economic Policies Based on Various Performance Indicators. In: Currency Wars. Contemporary Systems Thinking. Springer, Cham. https://doi.org/10.1007/978-3-319-67765-1_15
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DOI: https://doi.org/10.1007/978-3-319-67765-1_15
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