Based On The Evolution Of The Financial Crisis And Control Of The Duffing Equation

Based upon the chaotic theory, this paper has studied the different evolving stages offinancial crisis, and brought forward the suggestions and measures to control it, whichtries to remedy the insufficiencies of orthodox economics.This thesis has firstly compared chaotic economics with orthodox economics in ideas,methods and some specific researches on financial crisis issue. Then, a new method basedon ESO is put forward to filter financial time series, which will provide high qualitydatum for further chaotic research. In virtue of widely used nonlinear dynamicsmodel---Duffing equation, together with phase diagram analysis, the characteristics ofdifferent stages of Korean financial market (1996-2000) have been analyzedquantificationally from the angles of chaotic economics for the first time. Furthermore,depending on the nonlinear dynamics character involved in financial market, and throughcomputer simulation, the evolving trend of the market has been discussed after adoptingcontrolling policies of diverse categories. In conclusion, appropriate measures andpolicies have been proposed which are founded on the results of the simulation.