Stability modelling of financial pyramids Cover Image

Finansinių piramidžių stabilumo modeliavimas
Stability modelling of financial pyramids

Author(s): Vera Moskaliova, Stasys Girdzijauskas
Subject(s): Economy
Published by: Vilniaus Universiteto Leidykla

Summary/Abstract: Financial bubbles or financial pyramids generate critical situations in the economics. Subsequence which raise of such critical situations are hardly forecasted. Money flow modelling and activity analysis of such financial systems allows identifying Financial Pyramids and taking necessary means of precautions. On the other hand, even investing companies that function normally when market conditions change (e.g. interest rate) eventually might become FP. Modelling of FP allows identifying signs of such instability. The goal of research is to analyze financial pyramids models, to introduce the mathematical model for its recognition. This problem is very distantly researched. In this paper financial pyramid is considered as investing company. We calculate future value and present value of cumulative sum of the capital. The paper is prepared using comparable analysis, mathematical analysis of scientific literature and summing-up methods.

  • Issue Year: 2005
  • Issue No: 35
  • Page Range: 158-169
  • Page Count: 12
  • Language: Lithuanian