The Problems of Financial Cycle Modeling in the Globalization of Financial Markets

Economic globalization and the rapid development of financial markets has led to increased instability in global financial and credit sphere. Crises of the early 2000s raised the question of the need for in-depth study of the structure and dynamics of financial markets. In this paper the methodology of modeling financial market as a nonlinear dynamical system is studied. Based on the analysis of stochastic differential equations concluded that the probable presence of cycling in the capital market. Estimated synergetic role of derivatives in causing the crisis shocks.