Transformations  in
Business & Economics

LOGISTIC APPROACH TO SOME PARADOXES IN FINANCIAL MARKETS
Stasys Girdzijauskas, Dalia Streimikiene, Aleksas Pikturna, Antanas Buracas

ABSTRACT.The cyclic development of economy (from upturn to downturn) influences the important macroeconomic factors - gross domestic product, inflation, level of unemployment, rate of interest etc. Structural economic problems today are those that are not merely due to the normal business cycle, but are the result of more fundamental changes. Saturated markets initiate the operation of recently discovered yet for a long time operating problematic economic paradoxes: the paradox of growing returnability and the paradoxes of debt trap. These paradoxes occur exclusively in the saturated markets and cause the majority of economic problems including overproduction and economic bubbles. The aim of the paper is to apply logistic capital growth models for the analysis of economic paradoxes having direct impact on economic crisis. Seeking to achieve this aim the following tasks were developed: to reveal some aspects how the economic paradoxes do operate in economy (in general) and finance markets (in particular). The paper applies the logistic curves to deepen the understanding of markets' capacity limitations, and the formation of mechanism of cyclical fluctuations management.

KEYWORDS: logistic economic analysis, bubble, paradox of growing returnability, paradox of debt trap, logistic interest.

JEL classification: G01, G11, G17, E32, E43.