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Economic Chaos in Deterministic Systems

  • Wei-Bin Zhang
Part of the Springer Series in Synergetics book series (SSSYN, volume 53)

Abstract

In the previous chapter, we investigated business cycles which are created by different economic mechanisms. However, the practically observed economic data hardly exhibit such regular oscillations. Economic variables often appear to fluctuate irregularly. This chapter will explain such endogenous “chaotic” economic phenomena. We show that there is order in chaos; the “random” economic behavior may have an underlying geometric form. Such phenomena are deterministic, generated by fixed rules that do not involve any elements of chance. In principle the future is completely determined by the past; in practice it is almost impossible to forecast the future precisely in a chaotic world.

Keywords

Lyapunov Exponent Hopf Bifurcation Periodic Point Chaotic Motion Strange Attractor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1991

Authors and Affiliations

  • Wei-Bin Zhang
    • 1
  1. 1.Institute for Futures StudiesStockholmSweden

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