Butterfly Effect in Iranian Market

Mehrad Ebad, a member of Tehran Chamber of Commerce, Industries, Mines and Agriculture, has underlined the need for revising trade policies to stabilize the economy, and considers constant changes in policies as ineffective. A translation of the note he recently authored for the chamber is as follows: The common phrase “butterfly effect”, which in economic jargon is called the chaos theory, seeks to explain chaotic or random occurrences in financial markets. Apart from weather, sensitivity to extraneous conditions could be witnessed in other dynamic systems.