The Butterfly Effect refers to a long-term huge chain reaction in a dynamic system that can be driven by small changes under initial conditions. This is a chaotic phenomenon. A butterfly flapping its wings gently in the tropics may cause a hurricane in a distant country.
In p>2113, a suspected case of mad cow disease was discovered in the United States, which immediately brought a devastating hurricane to the newly recovered American economy. It is the unlucky "mad cow" that flapped the "butterfly wings". First of all, it was the American beef industry with a total output value of $175 billion and 1.4 million jobs. The corn and soybean industry in the United States, which is the main source of feed for cattle owners, has also been affected, and its futures prices have shown a downward trend. However, in the end, it was the decline of American consumers' confidence in beef products that contributed to the biggest loss of "mad cow disease hurricane". In today's globalization, this panic has not only caused the depression of domestic catering enterprises in the United States, but also spread to the whole world. At least 11 countries have announced an emergency ban on the import of American beef, and even residents in China and Guangdong, far away from the other side of the ocean, stay away from western-style catering. This is reminiscent of the bird flu at that time. The bird flu that was first discovered in individual countries quickly spread to the whole world. Even in areas or countries where bird flu was not found, people would "talk about the color change of chickens". For another example, can you imagine the relationship between smoking by an American and inflation in China? Suppose there is a person smoking in the United States now, and he accidentally throws an unlit cigarette butt on the bedside, and then goes out to work. After about 21 minutes, the cigarette butt slowly ignites the bed sheet, and the fire is getting bigger and bigger, gradually spreading to his neighbors, causing a series of explosions of gas tanks. At this time, Americans were already terrified of the "terrorist attack", but the perpetrator (the person who threw cigarette butts) forgot that he had thrown cigarette butts, so he was temporarily classified as a "terrorist attack" because he could not find out the reason at the moment. In this way, frightened people sold their stocks one after another, causing the stock market to plummet. People's declining consumer confidence has affected the entire American economy, and finally led to the depreciation of the US dollar. Due to the continuous depreciation of the US dollar, the price of basic raw materials priced in US dollars has risen, and the price of RMB pegged to the US dollar has also risen accordingly. As a result, the prices of commodities based on raw materials rose, which triggered the cost-driven inflation in China. This example is exaggerated just to show that when we explain an economic phenomenon, if we can't find the answer from conventional analysis, we must consider those seemingly insignificant factors. However, there are too many such factors and they are too unpredictable, which is why economists are always difficult to accurately predict specific economic indexes. But it is this unpredictability that creates a changeable and colorful world. Butterflies flapping their wings can cause tornadoes, so what's impossible? "Nothing is impossible", I'm afraid this is the biggest inspiration from the "butterfly effect". The financial crisis in Asia in 1998 and the stock market storm in the United States are actually the "butterfly effect" in economic operation; The "El Nino" phenomenon in the Pacific Ocean in 1998 is the "butterfly effect" caused by atmospheric movement. "Butterfly effect" is the manifestation of chaotic motion. When we further investigate the life phenomena, they are neither completely periodic nor purely random. They are both "frequency-locked" to the natural periodic process (seasons, day and night, etc.) and maintain the inherent "autonomy" nature. Butterfly effect is also a concept in chaos theory. It refers to a dependence on the sensitivity of initial conditions: the slight difference at the input end will be quickly amplified to the overwhelming difference at the output end, like a butterfly flapping its wings in Beijing today, which may trigger a series of events in the atmosphere, thus leading to a storm in new york in a certain month.