ICCS2004 Application Submission/Review

Abstract for
"To the wave nature of the economy cycle"

TO THE WAVE NATURE OF ECONOMIC CYCLES D.CHISTILIN Institute World economy and International Relations Ukraine Academy of Science Ukraine Current Address P.B 4721 Dnepropetrovsk 49094 Ukraine E-mail abstract The question of economic cycles' origin is still one of the most actual problem up till now. One of defined economic regularities and reasons initiating cyclic fluctuations in every researching sphere of functioning community is a trend of population growth, scarceness of resources for production and benefits for consumption. At the same time diffusion and integration of knowledge in different spheres and revealing of common regularities characteristic for organic and inorganic natures are taking place in the modern science. It includes discovery of dynamic chaos, principle of dissipation of open systems, etc. There is one more accomplishment, which is common for both organic and inorganic nature: formation of wave processes. In inorganic nature the wave process appears as a form of system's existence and as reaction of environment against outside disturbance. While considering conditions of origin of stationary wave in physics of non-linear processes it is obvious that wave process is a qualitative characteristic of the system itself existing in non-equilibrium state. According to the definition both characteristics -- density and viscosity -- initiate two opposite processes: twisting and overturning in case of outside disturbance availability which, in their turn, create the base for appearance of stationary wave. Analyzing different communities, social-economic systems we can observe an analogue process. Socium as an environment, a separate element of which is a human being, possesses two basic characteristics. It is different values of capability of every separate human being on one hand and organization of scarce resources for production and level of consumption of limited benefits, on the other hand. These two characteristics create two opposite trends of production and consumption in condition of growth of population and scarceness of resources during long period of time. These two mentioned trends of opposite directions initiate stationary wave process, which economics defines as economic cycle. Conclusions. Thus, the property of organic system to initiate wave processes under the influence of outside environment is a necessary condition for supporting dynamic stability of the system in the process of its development, i.e. supporting homeostasis.