Complex dynamics in a simple model of interdependent open economies

Based on a simple two-market model, characterized by a demand link between competitive markets for goods, a system of coupled difference equations is used to represent the interdependent structure of a global economy. Relying on numerical and analytical approaches, various dynamic properties of the proposed model are explored. Among others, a general specification of the r egions of stability of the equilibrium and main periodic cycles, the transi tion to chaos through torus destruction, chaotic synchronization, and the c oexistence of different types of attractors in parameter space are describe d. Typical bifurcation processes are illustrated.