Control of a Financial System using Eigen Structure Assignment based PI Controller

In this article, a nonlinear ‘3 × 3’ financial system is considered where interest rate, investment demand, and price exponent are controlled outputs. The average profit margin, market confidence, and production volume are considered as inputs. The control objective is to analyze the financial market with respect to its influencing variables. Due to the presence of coupling, chaos and feasibility issues, the control of such systems is a challenging task. A control strategy comprising of eigen structure assignment (ESA) and proportional integral (PI) control has been proposed to control such systems. ESA takes care of the coupling and the PI controller takes care of the tracking of desired output. The results validate the effectiveness of the proposed control scheme.