Model and optimization of financial networks

Financial networks is the circular flow of funds in an economy. Nagnrney and Dong have researched the model of financial networks. In this paper, we propose an improved model about assets, liabilities, appropriate sizes and prices, based on the financial networks models proposed by Nagnrney and Dong. This new improved model considers for all sectors the risks of instruments, the restraints for economic resource in financial networks, the restraints for the accountings of assets and liabilities. The improved model is more appropriate for application. We use the evolution programming algorithm to make simulations.