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"Market calms before storm," by Philip Ball. Nature Science Update, 25 May 2001.
Economic crashes are notoriously difficult to predict. They may be triggered by small, chance fluctuations that, à la chaos theory, have enormous effect. This brief article discusses a mathematical model that "can sense imminent instability" in a financial market. The model sometimes enters a "predictable corridor", which permits exceptionally good prediction of short-term variations and which often presage crashes.
--- Allyn Jackson
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