Volume 2, Issue 3, March 2013, Pages 196–215
Alexander A. Antonov1
1 Research Centre of Information Technologies "TELAN Electronics", P.O. Box 73, Kiev, 03142, Ukraine
Original language: English
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The major problem of the current market economy is absence of appropriate mathematical description of processes taking place in it, which results in misunderstanding of these processes, as well as lack of efficient means of preventing economic crises. The manuscripts suggests such a mathematical description, making use of the circumstance that the 'black box' of market economy has the corresponding 'white box', which turned out to be the processes well known in radio-electronics. This approach allowed proving that the current market economy, due to the significant influence of the human factor, is described with parametric differential equations with random coefficients, the solutions of which are also random functions of time. Therefore, it is basically unpredictable and uncontrollable, which makes economic crises inevitable. In order for the economy to become crisis-proof, it has to be reformed. We suggest using the new economic tools which allow solving the problem. Here belong business-interfaces that can neutralize the internal human factor, and the new global/regional information network TV
Author Keywords: Economic Crisis, Economic Reform, Crisis-Proof Economy, 'Invisible Hand', 'Goods-Money-Goods' Process, Human Factor.
Alexander A. Antonov1
1 Research Centre of Information Technologies "TELAN Electronics", P.O. Box 73, Kiev, 03142, Ukraine
Original language: English
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The major problem of the current market economy is absence of appropriate mathematical description of processes taking place in it, which results in misunderstanding of these processes, as well as lack of efficient means of preventing economic crises. The manuscripts suggests such a mathematical description, making use of the circumstance that the 'black box' of market economy has the corresponding 'white box', which turned out to be the processes well known in radio-electronics. This approach allowed proving that the current market economy, due to the significant influence of the human factor, is described with parametric differential equations with random coefficients, the solutions of which are also random functions of time. Therefore, it is basically unpredictable and uncontrollable, which makes economic crises inevitable. In order for the economy to become crisis-proof, it has to be reformed. We suggest using the new economic tools which allow solving the problem. Here belong business-interfaces that can neutralize the internal human factor, and the new global/regional information network TV
Author Keywords: Economic Crisis, Economic Reform, Crisis-Proof Economy, 'Invisible Hand', 'Goods-Money-Goods' Process, Human Factor.
How to Cite this Article
Alexander A. Antonov, “Fundamentals of crisis-proof economics,” International Journal of Innovation and Applied Studies, vol. 2, no. 3, pp. 196–215, March 2013.
