The effectiveness of government policies and economic stimuli during the 2007 financial crisis and the COVID-19 pandemic are compared in this study. While the 2007 financial crisis started in the real estate market and spread through the contagion effect to other sectors, the pandemic halted the...

We investigate masked financial instability caused by wealth inequality. When an economic sector is decomposed into two subsectors that possess a severe wealth inequality, the sector in entirety can look financially stable while the two subsectors possess extreme financially instabilities of...

We investigate masked financial instability caused by wealth inequality. When an economic sector is decomposed into two subsectors that possess a severe wealth inequality, the sector in entirety can look financially stable while the two subsectors possess extreme financially instabilities of...

The effectiveness of government policies and economic stimuli during the 2007 financial crisis and the COVID-19 pandemic are compared in this study. While the 2007 financial crisis started in the real estate market and spread through the contagion effect to other sectors, the pandemic halted the...

The 2007-2009 financial crisis provided need to investigate the causes of systemic risk - also known as contagion - and cures to avoid it. In this article, we use well-established theories in dynamical systems, bifurcation, symbolic dynamics, and chaos, to explain the mechanism behind the...

The 2007-2009 financial crisis has shown the importance of understanding economic and financial dynamics for the evaluation of systemic risks. In this article, we use classical perturbation theory of dynamical systems to measure the global stability of the financial system. We analyze the...

We recently ("http://ssrn.com/abstract=2320324" http://ssrn.com/abstract=2320324) formulated a theoretical framework for the modeling of the contagion of financial instability in terms of the theory of Dynamical Systems. Here, our main goal is to model the Eurozone financial crisis within that...

In this paper we study an agent-based model of economy to investigate the impact of borrowing capacity on financial instability and contagion. We divide an economy into agents that interact via flow of funds and express the financial instability level of each agent as a function of the time...

The impact of increasing leverage in the economy produces hyperreaction of market participants to variations of their revenues. If the income of banks decreases, they mass-reduce their lendings; if corporations sales drop, and due to existing debt they cannot adjust their liquidities by further...