Economic systems are often unpredictable, influenced by countless interacting factors such as capital flows, business cycles, and market dynamics. A recent study from researchers at Universitas Padjadjaran introduces a groundbreaking economic model that sheds light on this complexity.
Building upon an earlier model, the team incorporated foreign financing to better capture real-world economic dynamics. The model reveals how capital inflows can both stabilize and destabilize economies, leading to patterns of chaotic behavior. Using advanced tools like Lyapunov exponents and bifurcation diagrams, the researchers demonstrated that their model can explain the emergence of complex business cycles.
To manage these unpredictable shifts, the study proposes control strategies such as bistability analysis and synchronization methods. These approaches could help policymakers and economists predict and respond to rapid economic changes, ensuring stability before disruptions spread too far.
This research supports SDG 8: Decent Work and Economic Growth, as it contributes to creating a more stable and resilient economic system—one where growth can be sustained and crises mitigated.
#UnpadResearch #EconomicStability #SDG8
Link to the paper: https://www.scopus.com/pages/publications/85218172043
25/Mat/2025
