Using a recently introduced rational expectation model of bubbles, based on the interplay between stochasticity and positive feedbacks of prices on returns and volatility, we develop a new methodology to test how this model classifies nine time series that have been previously considered as...

Historically, symptoms of Mexican financial crises have been strongly reflected in the dynamics of the Mexican peso to the dollar exchange currency market. Specifically, in the Mexican financial crises during 1990's, the peso suffered significant depreciation processes, which has important...

We present a novel analysis extending the recent work of Mizuno et al. (Physica A 308 (2002) 411) on the hyperinflations of Germany (1920/1/1–1923/11/1), Hungary (1945/4/30–1946/7/15), Brazil (1969–1994), Israel (1969–1985), Nicaragua (1969–1991), Peru (1969–1990) and Bolivia...

We present a simple two-dimensional dynamical system where two nonlinear terms, exerting respectively positive feedback and reversal, compete to create a singularity in finite time decorated by accelerating oscillations. The power law singularity results from the increasing growth rate. The...

We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process and a stochastic conditional return which reflects nonlinear positive feedbacks and continuous updates of the investors' beliefs and sentiments. The conditional expected returns...