Study of Financial Innovation and Financial Supervision Based on Nonlinear Dynamic Theory

摘要

With financial liberalization and financial globalization, the financial system has increasingly become an open, nonlinear, complex system. The nonlinear dynamic theory is helpful for dealing with complex systems, so we make use of it to study the stability of financial system. Assuming the financial system compositing of financial innovation and financial supervision, we have deduced a two dimensional nonlinear dynamic financial system, and analyses the stability of this system. We find that when the parameters affecting stability of financial system are beyond its stable reach, the financial system will pass through double periodicity to chaos. And we successfully control chaos by the straight line method.