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Structural and Technological Stalemate in Eurozone: If This Is the Reality, What We Can Expect?

  • Askar Akaev
  • Yuri IchkitidzeEmail author
  • Valentin Sokolov
Chapter
Part of the Studies on Entrepreneurship, Structural Change and Industrial Dynamics book series (ESID)

Abstract

Even 6 years after the acute phase of the Great Recession 2007–2009, Euro area economy does not show strong growth, which signals severe structural and cyclical imbalances in the European economy. Empirical data reveals that both the Eurozone and the U.S.A. are facing since 2009 an unstable equilibrium that is prone to buckling under the influence of small internal or external price shocks. For detecting the bifurcation process, i.e. transition to a state of metamorphosis, we have specially developed models of nonlinear dynamics, which describe five possible stages of the economic system and, in particular, show that the Eurozone economy is entering into a very important stage of bifurcation and the consequences of which are fundamental to determine the nature of the future economic development of both European and global economy.

Keywords

Bifurcation Macroeconomic evolution Economic dynamics Structural shifts and cyclical changes 

Notes

Acknowledgments

The research has been supported by the Grant of the Russian Science Foundation. Research project No. 14-28-00065: “Structural and cyclical paradigm of economic and technological renovation of macro-systems (World and Russia in the first half of the twenty-first century)”.

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Askar Akaev
    • 1
  • Yuri Ichkitidze
    • 2
    Email author
  • Valentin Sokolov
    • 3
  1. 1.Research Institute of Complex Mathematical Systems on Behalf of I.R. Prigogine, Moscow State UniversityMoscowRussia
  2. 2.Department of Finance, National Research University Higher School of EconomicsSt-PetersburgRussia
  3. 3.Center for Fundamental Research of Economic Development in Russia, St-Petersburg State University of EconomicsSt-PetersburgRussia

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