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Fundamentals of crisis-proof economics

Journal: International Journal of Innovation and Applied Studies (Vol.2, No. 3)

Publication Date:

Authors : ;

Page : 196-215

Keywords : Economic Crisis; Economic Reform; Crisis-Proof Economy; 'Invisible Hand'; 'Goods-Money-Goods' Process; Human Factor;

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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?net, which is completely free from the shortcomings of the Internet and is able to neutralize the external human factor. It is shown that after the implementation of reforms suggested in the manuscript economics will become an exact science able to successfully solve the tasks of analysis and synthesis of economic structures, the tasks of their simulation and improvement, as well as regulation of the economy in general. The new economy will become crisis-proof and rapidly developing.

Last modified: 2013-04-05 08:59:33