Interest Rate Creates Chaos in Finance System : Control of Chaos Through Modified Adaptive Backstepping Technique

In the article in your hand control of chaos which appears when interest rate varies and savings, investment demands changes time to time has been studied. First equilibrium points are calculated and stability of finance system is investigated. Chaos is calculated by most authentic technique named Lyapunov exponents and sensitivity dependence. To stabilize the economy we have to control this chaos which is due to interest rate, price exponent, investment demands. To control of chaos within a finance system we have used Adaptive Control technique and modified Adaptive back stepping technique by which we bring the system into a stable state. Unidentified parameters are identified by these techniques. We also made a comparison of both the techniques from the stability point of view and involvement of constants. This work contains the applications, which cover the areas of applied mathematics, nonlinear dynamics and financial mathematics.