Magnus Irie: The theory of dynamical system and control applied to macroeconomics

The basics of difference equations, mathematical control theory and the theory of dynamical systems is presented and applied to macroeconomics. The theory of dynamical systems and mathematical control theory is applied to the problem of setting the interest rate at a level that minimizes a measure of social costs. The theory of difference equations is used to briefly discuss the widely debated theory of capitalism as laid out by economist Thomas Piketty.