The Impact of Energy Dissipation to the Stability in Financial System
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 1, February 2014, Pages: 111-116
Received: Jan. 26, 2014; Published: Feb. 28, 2014
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Author
Yikui Qiu, School of Finance, Central University of Finance and Economics, Beijing, China
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Abstract
Financial system has a characteristic of dissipative structure theory. In the nonlinear motion process, financial system is extremely easy to produce energy dissipation, which would lead to the emergence of system instability. In this paper, the dissipative structure characteristic of financial system would be analyzed in the first, and the energy function of financial system would be given. Then the energy dissipation and the energy exchange in financial system would be studied. At last, the influence of energy dissipation to system stability would be given. Financial system instability is related to the total entropy and the impact resistance ability of system. We can control system stability by these two factors. The research is importance to the study of financial stability theory and the control of financial system stability.
Keywords
Dissipative Structure, Energy Dissipation, System Stability, Financial System
To cite this article
Yikui Qiu, The Impact of Energy Dissipation to the Stability in Financial System, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 1, 2014, pp. 111-116. doi: 10.11648/j.ijefm.20140201.22
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