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The Application of Economic Logistic Analysis in the Research of Financial Crises
Published: 02 November 2011 by MDPI in The 1st World Sustainability Forum session Economical Sustainability
Abstract: Each economical cycle consists of a rise, peak, fall and crises. Year after year this curve has been studied by the scientists. It is attempted to explain the reasons of these phenomena, to foresee their range, to reduce the negative impact or to use the positive benefit of the range. Constantly repeated downturns, crises require new market researches and these researches help to develop theories that explain the crises. In this article both classic and new theories of financial and economical crises were reviewed and compared. The representatives of these theories are K. Marx, J. Keynes, H. Minsky, F Muth, R. Lucas, Blanchard, C. P. Kindleberger, F. Fama, R. Shiller, A. Johansen, D. Sornette, S. Girdzijauskas. The professor of Vilnius University, Stasis Girdzijauskas established a well-developed theory of logistic management of capital, which reveals the reasons of financial and economical crises, unnamed paradoxes in economy, innovatively evaluated inflations, the sources of other phenomena, closed and open markets and development of their capacity. The theory of logistic management of capital as the biggest problem emphasizes and indicates the filling of system capacity by capital, in which it is invested. It is shown that the economical downturns can be prevented by invoking the theory of logistic management of capital.
Keywords: The theory of logistic management of capital, financial crisis, economic crisis, inflation, the classic theories of crises, new theories of crises, economic paradoxes, market capacity.