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IEEE SMC'99 Conference Proceedings. 1999 IEEE International Conference on Systems, Man, and Cybernetics (Cat. No.99CH37028)
In this paper we propose a dynamic model of financial markets which a large number of interacting traders forms by using a synergetic approach [Weidlich and Haag (1983)]. W e consider a international financial system which consists of two currency blocs. Each currency bloc has the markets for three securities (a stock, a bond, and a domestic currency). We show the characteristic patterns of speculative prices (speculative bubbles and the burst, and the triple merit (the triple demerit)) whichdoi:10.1109/icsmc.1999.825331 fatcat:cwoa43iiu5f2dlw3m4lp55vhr4