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Autor principal: Gokavarapu, Chandrasekhar
Formato: Preprint
Publicado: 2026
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Acceso en línea:https://arxiv.org/abs/2602.02541
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author Gokavarapu, Chandrasekhar
author_facet Gokavarapu, Chandrasekhar
contents Traditional balance-of-payments (BoP) analysis treats national external positions as largely idiosyncratic time series. This misses an essential structural fact: global imbalances are jointly realized on a directed, weighted network of cross-border current-account and financial claims. We propose a network-theoretic paradigm in which the world economy is a directed graph whose edge weights encode net bilateral exposures. In this setting, systemic fragility is an emergent property of the spectral topology of the global exposure matrix. We develop (i) a mathematically explicit construction of a BoP adjacency operator, (ii) a \textbf{Spectral Stability Criterion} proving that the system is globally asymptotically stable if and only if the spectral radius $ρ(A) < 1$, and (iii) a \textbf{Spectral Stability Margin} ($δ= 1 - ρ(B)$) that quantifies the proximity of the global economy to a ``Critical Slowing Down'' phase transition. Furthermore, we define a systemic-risk index using eigenvector centrality to identify nodes whose failure is mathematically indistinguishable from global collapse. Finally, we employ a \textbf{Non-backtracking (Hashimoto) operator} to derive a precise \textbf{topological threshold} for sovereign debt contagion, filtering bilateral ``noise'' to isolate deep-network circulation. Our results demonstrate that systemic risk is a latent property of the global spectral topology, requiring macroprudential interventions targeted at the network's spectral gaps rather than individual debt-to-GDP ratios.
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spellingShingle The Spectral Topology of Global Imbalances:A Graph-Theoretic Framework for Systemic Risk in the Balance of Payments
Gokavarapu, Chandrasekhar
Physics and Society
Rings and Algebras
05C82, 15B48, 91B64, 37N40, 05C50
Traditional balance-of-payments (BoP) analysis treats national external positions as largely idiosyncratic time series. This misses an essential structural fact: global imbalances are jointly realized on a directed, weighted network of cross-border current-account and financial claims. We propose a network-theoretic paradigm in which the world economy is a directed graph whose edge weights encode net bilateral exposures. In this setting, systemic fragility is an emergent property of the spectral topology of the global exposure matrix. We develop (i) a mathematically explicit construction of a BoP adjacency operator, (ii) a \textbf{Spectral Stability Criterion} proving that the system is globally asymptotically stable if and only if the spectral radius $ρ(A) < 1$, and (iii) a \textbf{Spectral Stability Margin} ($δ= 1 - ρ(B)$) that quantifies the proximity of the global economy to a ``Critical Slowing Down'' phase transition. Furthermore, we define a systemic-risk index using eigenvector centrality to identify nodes whose failure is mathematically indistinguishable from global collapse. Finally, we employ a \textbf{Non-backtracking (Hashimoto) operator} to derive a precise \textbf{topological threshold} for sovereign debt contagion, filtering bilateral ``noise'' to isolate deep-network circulation. Our results demonstrate that systemic risk is a latent property of the global spectral topology, requiring macroprudential interventions targeted at the network's spectral gaps rather than individual debt-to-GDP ratios.
title The Spectral Topology of Global Imbalances:A Graph-Theoretic Framework for Systemic Risk in the Balance of Payments
topic Physics and Society
Rings and Algebras
05C82, 15B48, 91B64, 37N40, 05C50
url https://arxiv.org/abs/2602.02541