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Crashes : symptoms, diagnoses and remedies

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  • M. Ausloos
  • K. Ivanova
  • N. Vandewalle

Abstract

A brief historical perspective is first given concerning financial crashes, - from the 17th till the 20th century. In modern times, it seems that log periodic oscillations are found before crashes in several financial indices. The same is found in sand pile avalanches on Sierpinski gaskets. A discussion pertains to the after shock period with illustrations from the DAX index. The factual financial observations and the laboratory ones allow us some conjecture on symptoms and remedies for discussing financial crashes along econophysics lines.

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  • M. Ausloos & K. Ivanova & N. Vandewalle, 2001. "Crashes : symptoms, diagnoses and remedies," Papers cond-mat/0104127, arXiv.org, revised Apr 2001.
    • Handle: RePEc:arx:papers:cond-mat/0104127
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    References listed on IDEAS

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    1. Czarnecki, Łukasz & Grech, Dariusz & Pamuła, Grzegorz, 2008. "Comparison study of global and local approaches describing critical phenomena on the Polish stock exchange market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(27), pages 6801-6811.
    2. Marcel Ausloos, 2014. "A biased view of a few possible components when reflecting on the present decade financial and economic crisis," Papers 1412.0127, arXiv.org.
    3. Cajueiro, Daniel O. & Tabak, Benjamin M. & Werneck, Filipe K., 2009. "Can we predict crashes? The case of the Brazilian stock market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(8), pages 1603-1609.
    4. Marcel Ausloos, 2012. "Econophysics in Belgium. The first (?) 15 years," Papers 1212.1946, arXiv.org.

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