Time and Money: How Long and How Much Money is Needed to by Jean-Pierre Aubin

By Jean-Pierre Aubin

This authored monograph offers an unconventional method of an enormous subject in monetary idea. the writer is knowledgeable within the box of viability concept which was once stimulated via economics on the finish of the 1970's (see Dynamic fiscal thought: a Viability technique, Springer, (1996). it really is used the following to investigate how an financial system could be dynamically endowed in order that it really is economically plausible.

Economic viability calls for an assumption at the joint evolution of commodities transactions, fluctuations of costs and numeraire devices: the sum of the “transactions values” and the “impact of fee fluctuations” might be unfavourable or equivalent to 0. The e-book offers a computation of the minimal endowment which restores fiscal viability and derives the dynamic legislation that keep watch over either transactions and cost fluctuations.

The target market essentially contains open-minded and mathematically economists however the ebook can also be valuable for graduate scholars.

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Read or Download Time and Money: How Long and How Much Money is Needed to Regulate a Viable Economy (Lecture Notes in Economics and Mathematical Systems, Volume 670) PDF

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Additional info for Time and Money: How Long and How Much Money is Needed to Regulate a Viable Economy (Lecture Notes in Economics and Mathematical Systems, Volume 670)

Sample text

The temporal windows are indicated by bars. The figure provides an example indicating that exponential financial growth provided by compounded interests does not fit the evolution of the CAC 40 index in its price tube since the detected windows are very small. Actually, one can prove that the stock market asset tubes are not viable under the geometric models, deterministic or stochastic, used almost universally in mathematical finance (as the simplest one leading to the Black and Sholes formula for estimating the prices of European options), which are not validated by experiments right at the beginning (see [17, Tychastic Measure of Viability Risk.

Exponential Detection of the Last Price 3,400 alarms prices 3,600 3,200 3,000 0 10 10 20 20 30 30 High Last Price 4040 5050 60 60 70 70 exponential pattern exponential detection anomalies 9 [Exponential Detector] Here, the differential equation detecting patterns is a linear system providing exponentials patterns. The temporal windows are indicated by bars. The figure provides an example indicating that exponential financial growth provided by compounded interests does not fit the evolution of the CAC 40 index in its price tube since the detected windows are very small.

The value governed a constant equal to the average of CAC-40 rates from the index at initial time. 00008). 02482. Actually, we know the upper bounds (HIGH) and lower bounds (LOW) of the CAC-40 index provided by brokerage firms. They delineate a tube in which lie the closing values of the index. The figure below displays this tube and the derived tube of returns taken during a period of 75 days in 2012. No exponentials pop up at first sight. Tube of Data 3,600 4 Tube of Returns ·10−2 2 3,400 0 3,200 −2 −4 3,000 0 10 20 Upper Velocity 30 40 50 time Lower Velocity 60 Velocity 70 0 10 20 30 lower bounds of returns 40 50 60 time upper bounds of returns 70 returns 16 1 The Underlying Thesis More rigourously, “viability detectors” provide evolutions governed by a dynamical system viable in a tube around a time series, provides the temporal windows during which the evolution remains in this tube.

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