USING THE FINITE VOLUME METHOD IN COMPUTING THE PROPAGATION OF THE FINANCIAL CRISIS IN THE REAL ECONOMY

Given the present economical situation, the problem of the propagation of financial crisis is an important matter to search upon. The global capital markets are becoming contagious in a short period after the crisis arises but in the real economy its spreading takes a while. We can measure the power of contagion by using econometrical models but we don't quite know when the real economy gets in contact with the contagion. This article will try to explain the application of the finite volume method in computing the exact moment when the crisis will hit a certain country or region, by showing the way to define the input information of the algorithm.