Control Crisis in Financial Systems with Dynamic Complex Network Approach

Financial stability in interconnected markets is increasingly challenged by nonlinear interactions that amplify local disturbances into systemic crises. This study models a financial system as a complex network of coupled chaotic nodes, where each node represents a nonlinear macroeconomic subsystem governed by endogenous feedback dynamics. In contrast to traditional centralized interventions, a pinning control strategy is proposed to stabilize a network through selective control of a small subset of influential nodes. Numerical simulations show how local crises propagate through coupling links, generating systemic instability, and how the proposed impulsive control scheme effectively suppresses chaos and restores synchronization across an entire network. Results highlight the efficiency of localized interventions for achieving global stability, offering new theoretical insights into mechanisms of financial correlation and design of control-based resilience strategies for complex economic systems.