Usefulness of Artificial Neural Networks for Predicting Financial and Economic Crisis

Abstract

The objective of the present study is to explore the issue of the forecasting of economic crisis using the neural network. The subject is of great importance in the economy, more so as that most countries affected by crisis, declared at the end of 2010, the economic growth but the crisis paralyzed the financial world over the past three years. Neural network techniques have been frequently applied in order to predict problems like economic forecasting. The results show that creating a model using the neural networks might be a powerful tool and could be applied to prevent economic crises.

Keywords

• Economic and financial crisis
• Forecasting models
• Neural networks