A 5D chaotic macroeconomic model for simulating policy synchronization in developing economies

Abstract

This paper proposes a novel approach that lies in the structure of the equations and the economic application to reflect complex nonlinear interactions between key macroeconomic variables such as inflation, exchange rate, unemployment, GDP, and foreign investment. The model contains nonlinear differential equations coupled with feedback terms that induce hypersonic behavior. This structure enables the study of economic instability under various parameter settings and analysis of control strategies stabilizing the economy. Numerical simulation displays the sensitivity of the system towards initial conditions and the presence of many positive Lyapunov exponents. The proposed model provides insight into economic fragility and allows the design of strong policy interventions.