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VALKO PETROV

This paper presents a mathematical solution of the problem for financial stabilization. The exact statement of the problem is carried out in terms of the four conventional market values, involved in the famous Fisher equation of monetary circulation. The latter is subjected to sush named dynamic extension. Then, the conditions for occurrence of economic destabilization and cyclicality are deduced analytically. At the end, the final conclusion is made, that to escape the occurrence of economic crisis cycles, it is necessary to sustain sufficiently high progressive taxation and respectively enough mass consumption.