Is there chaos in economic time series

In recent years, interest in deterministic chaos has increased tremendously and the literature is still growing. Besides its obvious intellectual appeal, there are at least two reasons why chaos is so interesting. First, chaos is able to generate complex behaviour which appears random, thereby representing a change of perspective in the explanation of fluctuations in economic time series. Second, although chaos is unpredictable, the fact that it is deterministic makes it exploitable and therefore usable. Chaos is a nonlinear deterministic process which looks random. In fact, chaotic processes have first and second moment properties that are the same as for white noise processes -this is why they are also called "white chaos." The distinguishing feature of chaotic systems, however, is that they exhibit sensitive dependence on initial conditions. To be more specific, sensitivity to initial conditions implies that nearby identical chaotic systems in slightly different states will rapidly evolve toward very different states.