On a model of a currency exchange rate -- local stability and periodic solutions (Q1768358): Difference between revisions

A delay differential equation is presented which models how the behavior of traders influences the short time movements of an asset. Sensitivity to price changes is measured by a parameter \(a\). There is a single equilibrium solution, which is nonhyperbolic for all \(a>0.\) They prove that for \(a<1\) the equilibrium is asymptotically stable, and that for \(a>1\) a \(2-\)dimensional global center unstable manifold connects the equilibrium to a periodic orbit. Its birth at \(a=1\) is not of Hopf type and seems part of a Takens-Bogdanov scenario.