Perez Avellaneda, IvanRosales, FranciscoDuffaut Espinosa, Luis A.2024-07-082024-07-082024-02-09Perez Avellaneda, I., Rosales, F., & Duffaut Espinosa, L. A. (2024). Feedback dynamic control for exiting a debt-induced spiral in a deterministic Keen model. PLoS ONE, 19(2), e0295859. https://doi.org/10.1371/journal.pone.0295859https://hdl.handle.net/20.500.12640/4016The Keen model is designed to represent an economy as a dynamic system governed by the interactions between private debt, wage share, and employment rate. When certain conditions are met, the model can lead to a debt spiral, which accurately mimics the impact of a financial crisis on an economy. This manuscript presents a recipe for breaking this spiral by expressing Keen’s model as an affine nonlinear system that can be modified through policy interventions. We begin by considering critical initial conditions that resemble a financial crisis to achieve this goal. We then locate a desired point within the system’s vector field that leads to a desirable equilibrium and design a path towards it. This path is later followed using one-step-ahead optimal control. We illustrate our approach by presenting simulated control scenarios.application/pdfenginfo:eu-repo/semantics/openAccessAttribution 4.0 Internationalhttps://creativecommons.org/licenses/by/4.0/Keen modelModelo KeenDebt spiralEspiral de deudainfo:eu-repo/semantics/articlehttps://doi.org/10.1371/journal.pone.0295859https://purl.org/pe-repo/ocde/ford#5.02.04