An efficient numerical method is presented for the stability analysis of linear retarded dynamical systems. The method is based on a special kind of discretization technique with respect to the past effect only. The resulting approximate system is delayed and time-periodic in the same time, but still, it can be transformed analytically into a high dimensional linear discrete system. The method is especially efficient for time varying delayed systems, including the case when the time delay itself varies in time. The method is applied to determine the stability charts of the delayed Mathieu equation with damping.

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