To better understand and utilize the chaotic financial system, we introduce a quadratic term into the third equation of the original system, which represents the effect of external disturbances on the interest rate and the investment demand, etc., and thus establish a new four-dimensional chaotic system. The newly added parameters can effectively control the chaotic nature and stability of this system. By analyzing the Lyapunov exponent, chaotic attractor, phase diagram, and equilibrium point of the system, it is proved that the system has complex chaotic dynamics. In addition, because of the large influence of different initial values and the selection of different parameter values on the chaotic system, we used different initial values of the system and several typical new parameter values for simulation and observation, respectively, and from the results, it is consistent with our inference. All parts of the article are validated and illustrated by MATLAB numerical simulations.

Haojie Yu. Dynamic Analysis of an Improved Financial System with New Parameter. Academic Journal of Computing & Information Science (2024), Vol. 7, Issue 8: 49-56. https://doi.org/10.25236/AJCIS.2024.070808.

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