Stability Analysis of Finance System Model with Information Effect

Indonesia's participation in investing in the capital market is still very low, one of the causes is the lack of information. So this study discusses the analysis of stability in the financial system if influenced by information. We find that the model has two equilibrium point, that are point...

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Bibliographic Details
Main Authors: Vivi Aida Fitria, Yudistira Arya Sapoetra
Format: article
Language:EN
Published: Department of Mathematics, UIN Sunan Ampel Surabaya 2020
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Online Access:https://doaj.org/article/679f25d1e540469a9c9d792b6b8c8dbe
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Summary:Indonesia's participation in investing in the capital market is still very low, one of the causes is the lack of information. So this study discusses the analysis of stability in the financial system if influenced by information. We find that the model has two equilibrium point, that are point without interest rates and the price index of financial instruments and then the existing point of interest rates, the level of investment demand, price indexes and the influence of control input the information. The results of the local stability analysis of the equilibrium points are stable with certain conditions. The analytical result are confirmed by numerical simulations.