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A Simple Model of Credit Expansion

General Finance 2016-09-19 v1

Abstract

The proposed model is aimed to reveal important patterns in the behavior of a simplified financial system. The patterns could be detected as regular cycles consisting of debt bubbles and crises. Financial cycles have a well defined structure and form periodic sequences along the axis of credit expansion while retaining stochastic nature in terms of time.

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Cite

@article{arxiv.1609.05055,
  title  = {A Simple Model of Credit Expansion},
  author = {Alexander Smirnov},
  journal= {arXiv preprint arXiv:1609.05055},
  year   = {2016}
}

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45 pages