2016/07/05 by Smirnov, Alexander
#91B24 (Primary) 91B55 (Secondary) #FOS: Economics and business #G.3 #General Finance (q-fin.GN)
paper · doi:10.48550/arxiv.1609.05055
The proposed model is aimed to reveal important patterns in the behavior of a simplified financial system. The patterns could be detected as regular cycles consisting of debt bubbles and crises. Financial cycles have a well defined structure and form periodic sequences along the axis of credit expansion while retaining stochastic nature in terms of time.