Dynamic behavior of a nonlinear macro-financial system

We investigate dynamic behavior of the macro- financial models governed by a system of three first order differential equation involving interest rate, price exponent and investment demand. Using this mathematical model, all the possible behavior that a model shows in the operation of macro-financial system were examined, such as equilibria, stability and Hopf-bifurcations. We find out the ranges of parameters involved in the system under which the equilibria exist the relationship between the parameters and Hopf-bifurcation. Due to changes in conditions in parameters in this financial system, all the behavior of the model as well as the effects of adjustment of the macro-economic policies and adjustment of some parameter on the whole financial system behavior were discussed by applying Ruth-Hurwitz theorem. Hence, It provides better understanding of the lever function of all types of financial policies.