Quantitative Finance > General Finance
[Submitted on 24 May 2013 (v1), last revised 29 May 2013 (this version, v2)]
Title:To the problem of turbulence in quantitative easing transmission channels and transactions network channels at quantitative easing policy implementation by central banks
View PDFAbstract:In agreement with the recent research findings in the econophysics, we propose that the nonlinear dynamic chaos can be generated by the turbulent capital flows in both the quantitative easing transmission channels and the transaction networks channels, when there are the laminar turbulent capital flows transitions in the financial system. We demonstrate that the capital flows in both the quantitative easing transmission channels and the transaction networks channels in the financial system can be accurately characterized by the Reynolds numbers. We explain that the transition to the nonlinear dynamic chaos regime can be realized through the cascade of the Landau, Hopf bifurcations in the turbulent capital flows in both the quantitative easing transmission channels and the transaction networks channels in the financial system. We completed the computer modeling, using both the Nonlinear Dynamic Stochastic General Equilibrium Theory (NDSGET) and the Hydrodynamics Theory (HT), to accurately characterize the US economy in the conditions of the QE policy implementation by the US Federal Reserve. We found that the ability of the US financial system to adjust to the different levels of liquidity depends on the nonlinearities appearance in the QE transmission channels, and is limited by the laminar turbulent capital flows transitions in the QE transmission channels and the transaction networks channels in the US financial system. The proposed computer model allows us to make the accurate forecasts of the US economy performance in the cases, when there are the different levels of liquidity in the US financial system.
Submission history
From: Ledenyov Oleg Pavlovich [view email][v1] Fri, 24 May 2013 09:05:48 UTC (2,389 KB)
[v2] Wed, 29 May 2013 11:30:14 UTC (2,389 KB)
References & Citations
Bibliographic and Citation Tools
Bibliographic Explorer (What is the Explorer?)
Connected Papers (What is Connected Papers?)
Litmaps (What is Litmaps?)
scite Smart Citations (What are Smart Citations?)
Code, Data and Media Associated with this Article
alphaXiv (What is alphaXiv?)
CatalyzeX Code Finder for Papers (What is CatalyzeX?)
DagsHub (What is DagsHub?)
Gotit.pub (What is GotitPub?)
Hugging Face (What is Huggingface?)
Papers with Code (What is Papers with Code?)
ScienceCast (What is ScienceCast?)
Demos
Recommenders and Search Tools
Influence Flower (What are Influence Flowers?)
CORE Recommender (What is CORE?)
arXivLabs: experimental projects with community collaborators
arXivLabs is a framework that allows collaborators to develop and share new arXiv features directly on our website.
Both individuals and organizations that work with arXivLabs have embraced and accepted our values of openness, community, excellence, and user data privacy. arXiv is committed to these values and only works with partners that adhere to them.
Have an idea for a project that will add value for arXiv's community? Learn more about arXivLabs.