Currency Wars

1. Front Matter

   Pages i-xxiii

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2. Unconscious, Helpless, and Orchestrated Financial Crises

   • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

   Pages 1-14

3. Systems Research and the Systemic Yoyo Model

   • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

   Pages 15-47

4. Systemic Modeling of Economic Entities and Processes

   1. Front Matter

      Pages 49-49

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   2. Systemic Representation of Economic Organizations

      • Jeffrey Yi-Lin Forrest, Jesus Valencia, Yirong Ying, Zaiwu Gong, Baohua Yang, Qiaoxing Li

      Pages 51-72

   3. Order Reduction of Dynamic Monetary Systems

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Jinsuai Zhao, Jesus Valencia, Baohua Yang et al.

      Pages 73-108

   4. Estimating the State of Economy Through Observers

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Bohua Yang, Yong Liu, Abdykappar Ashimov et al.

      Pages 109-127

   5. Estimating the State of Economy Through Controllers

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Yong Liu, Abdykappar Ashimov, Yuriy Borovskiy

      Pages 129-147

5. Instability: The Brewing of Currency Wars

   1. Front Matter

      Pages 149-149

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   2. Some Major Financial Crises in History: 1929–2008

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

      Pages 151-179

   3. Effects of Foreign Capital on Economic Security

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Kurt Schimmel, Sifeng Liu, Jeananne Nicholls

      Pages 181-195

   4. Economic Security Under Disturbances of Foreign Capital

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Kurt Schimmel, Sifeng Liu, Jeananne Nicholls et al.

      Pages 197-215

6. Observability: Initiating Currency Wars

   1. Front Matter

      Pages 217-217

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   2. Inevitability of Currency Wars

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

      Pages 219-243

   3. Flashing with Swords: How Currency Wars Take Place

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

      Pages 245-263

7. Strategies of Self Defense

   1. Front Matter

      Pages 265-265

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   2. Self-Defense Through Manipulating Exchange Rate

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong

      Pages 267-283

   3. Self-Defense Based on Feedback Mechanism

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Bohua Yang, Sailau Baizako, Oinarov Azamat Ryskulovich

      Pages 285-305

   4. Another Plan of Self-Protection

      • Jeffrey Yi-Lin Forrest, Yirong Ying, Zaiwu Gong, Qionghao Chen

      Pages 307-324

8. Clean Up Disastrous Aftermath Through Policies and Reforms

   1. Front Matter

      Pages 325-325

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This book uses systemic thinking and applies it to the study of financial crises. It systematically presents how the systemic yoyo model, its thinking logic, and its methodology can be employed as a common playground and intuition to the study of money, international finance, and economic reforms. This book establishes theoretical backings for why some of the most employed interferences of the market and empirical experiences actually work. It has become urgent for economists and policy makers to understand how international speculative capital affects the economic security of various nations. By looking at the issues of monetary movement around the world, this book shows that there are clearly visible patterns behind the flows of capital, and that there are a uniform language and logic of reasoning that can be powerfully employed in the studies of international finance As shown in this book, many of the conclusions drawn on the basis of these visible patterns, language, and logic of thinking can be practically applied to produce tangible economic benefits. 

Currency Wars: Offense and Defense through Systemic Thinking is divided into six parts. The first part addresses issues related to systemic modeling of economic entities and processes and explains how a few policy changes can adjust the performance of the extremely complex economy. Part II of the book investigates the problem of how instabilities lead to opportunities for currency attacks, the positive and negative effects of foreign capital, and how international capital flows can cause disturbances of various degrees on a nation’s economic security. Part III examines how a currency war is initiated, why currency conflicts and wars are inevitable, and a specific way of how currency attacks can take place. In Part IV, the book shows how one nation can potential defend itself by manipulating exchange rate of its currency, how the nation under siege can protect itself against financialattacks by using strategies based on the technique of feedback, and develops a more general approach of self-defense. Part V focuses on issues related to the cleanup of the disastrous aftermath of currency attacks through using policies and reforms. Finally the book concludes in Part VI as it analyzes specific real-life cases and addresses the ultimate problem of whether or not currency wars can be avoided all together.

• Systems Science
• Systemic Modeling
• Systemic Thinking
• Finance
• Financial Crisis
• Systemic Yoyo
• Second-Order Science
• Dynamic Monetary Systems
• Currency War

• School of Business, Slippery Rock University, Slippery Rock, USA

  Jeffrey Yi-Lin Forrest

• College of Economics, Shanghai University, Shanghai, China

  Yirong Ying

• College of Economics and Management, Nanjing University of Information Science and Technology, Nanjing, China

  Zaiwu Gong

Jeffrey Yi-Lin Forrest holds all his educational degrees in pure mathematics and had one-year post-doctoral experience in statistics at Carnegie Mellon University. He had been a guest professor of economics, finance, and systems science at several major universities in China, including Nanjing University of Aeronautics and Astronautics. And currently, he is a professor of mathematics at Slippery Rock University, Pennsylvania, and the president of the International Institute for General Systems Studies, Inc., Pennsylvania. He serves either currently or in the past on the editorial boards of eleven professional journals, including “Kybernetes: the International Journal of Systems, Cybernetics and Management Science,” “Journal of Systems Science and Complexity,” “International Journal of General Systems,” etc. As of the end of 2015, he has published well over 300 research papers and 45 monographs and special topic volumes. Some of these monographs and volumes were published by such prestigious publishers as Springer, World Scientific, Kluwer Academic, Academic Press, etc. Over the years, Dr. Yi Lin’s scientific achievements have been recognized by various professional organizations and academic publishers. In 2001, he was inducted into the Honorary Fellowship of the World Organization of Systems and Cybernetics. His research interests are wide ranging, covering areas like economics, finance, management, marketing, data analysis, predictions, mathematics, systems research and applications, philosophy of science, etc. 

Yirong Ying is professor of finance, and is associate chair of Department of Finance, College of Economics, Shanghai University. He earned his B.S. degree in mathematics in 1982 from Mathematics Department of Northwest University (China) and his Ph.D. degree in mathematics in 2000 from Mathematics Department of Xidian University. In 2002, Dr. Ying did one year of post-doctoral study in finance at Institute of Contemporary Finance, S
hanghai Jiao-Tong University.Additionally, Dr. Ying has published more than fifties research papers in various professional journals, such as Kybernetes, Advances in Systems Science and Applications, Annuals of Differential Equations, Journal of Management Science, Journal of System Management, Journal of Chang’an University, Chinese Journal of Engineering Mathematics, International Journal of Research in Business and Technology, International Journal of Engineering Mathematics and Computer Sciences. Currently, Professor Ying is a director of Shanghai Financial Engineering Association, System Science, Management Science & System Dynamics Association, and Chinese Enterprise Operations Research Association. He has won numerous Awards of Excellent Research. His works have been financially funded by National Natural Science Foundation (China), the Ministry of Education (China), and various agencies of Shanghai.
 
Zaiwu Gong is professor and specialized in group decision-making, grey systems, and risk analysis. Among his main research achievements, Dr. Gong developed a group consensus decision-making theory based on optimization and a multi-system consensus decision-making theory with decision makers’ (DMs’) intuitive preferences. He proposed a group consensus measure theory with utility constraint by considering DMs behavioral characteristics, and analyzed disaster risk evaluation theory’s impact on rapid consensus decision-making by considering the emergency characteristics of disaster risk. Along these lines, he has published over 70 research papers on such well-known international journals as the European Journal of Operational Research and Omega. His applied works are mainly published in a special issue of Natural Hazards and have been incorporated into the Academic Committee Development Plan for the Chinese Meteorological Society of Meteorological Disasters and Services. Professor Gong has also published four monographs by Science Press and Springer Press and one textbook published by Meteorological Press.
Dr. Gong has been involved in more than 20 projects funded at the Chinese national and provincial levels and has directed three projects for the National Natural Science Foundation of China. He led one project for the Humanities and Social Science Foundation of the Chinese National Ministry of Education, and four provincial projects that funded special talents (e.g., the Qinglan Project for the Department of Education, Jiangsu Province; the 333 high-level Talent Training Project, Jiangsu Province; and the Six Talent Peak Project, Jiangsu Province). Dr. Gong has been awarded 10 prizes, including the Excellent Paper Award for
the 4th IEEE International Conference on Grey Systems and Intelligent Services, the Outstanding Paper Award from an international publishing company, and the third prize for Excellent Achievement in Philosophy and Social Science in Jiangsu Province.
Dr. Gong has supervised 30 graduates (including five international graduates majoring in business administration). Among his students, two were awarded the Excellent Master’s Thesis of Nanjing University of Information Science and Technology, three have won a National Scholarship, and two have won the third prize for the National Graduate Mathematical Modeling Contest.

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