Abstract

Various economic crises such as banks, finance and currencies cause high economic costs and hurt society. The development of an early warning system can help prevent economic and commercial crises while systematically predicting unwanted events. Early warning systems are primarily used the detect crises before they cause damage and reduce false alarms that can occur. The purpose of this article is to provide a complex embedded system analysis of early warning systems and their development and use in a variety of environments, especially in the economic and financial fields. Studying the role of early warning systems in predicting and identifying adverse events, especially in the areas of business, finance and economics. This article also contributes to the existing literature by providing a systematic analysis of the development and use of early warning systems to predict major and problematic events in economic and social development. Banking and currency crises are a considerable cost for domestic and international financial systems. They avoid the cost of these critical issues, predicted the crisis surfaced, and led the development of a vibrant research area, that an Early Warning System (EWS). Related to the formation of the crisis, the crisis actually occurs between the variables and warning policymakers about future financial crises and assistance to prevent crises. Use historical data of model explicitly warning system relations. Continued global economic and financial crises exacerbated the urgency establish such a financial catastrophe model.

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