Chaos theory is a branch of physics and mathematics that focus on the alteration of dynamic variables. Initially, chaos theory was evolved when the scientist observed the movement of the planet and changes in environment. However, this theory can also be applied in economy field. For some economist, this theory can be used to forecasting and making a prediction of financial evidence. In 1990, the number of economist increased in the research involving chaos theory to seek out the model of forecasting. The basic ideas in making the model was by involving the pattern of change and development, and taking into account all viable variables. These notions made forecasting become over-challenging. The chaos theory, actually, change the linear system which is believed in the past, become non-linear system with involving the variables alterations. All we can learn from chaos theory is that it simply teaches about accepting uncertainty.
source : IELTS Cambridge
source : IELTS Cambridge
