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Dynamics of money
- Source :
- Physical Review E. 60:2528-2532
- Publication Year :
- 1999
- Publisher :
- American Physical Society (APS), 1999.
-
Abstract
- We present a dynamical many-body theory of money in which the value of money is a time dependent ``strategic variable'' that is chosen by the individual agents. The value of money in equilibrium is not fixed by the equations, and thus represents a continuous symmetry. The dynamics breaks this continuous symmetry by fixating the value of money at a level which depends on initial conditions. The fluctuations around the equilibrium, for instance in the presence of noise, are governed by the ``Goldstone modes'' associated with the broken symmetry. The idea is illustrated by a simple network model of monopolistic vendors and buyers.
- Subjects :
- Computer Science::Computer Science and Game Theory
Variable (computer science)
Monopolistic competition
Quantity theory of money
Continuous symmetry
Simple (abstract algebra)
Economics
Symmetry breaking
Mathematical economics
Computer Science::Computers and Society
Network model
Time value of money
Subjects
Details
- ISSN :
- 10953787 and 1063651X
- Volume :
- 60
- Database :
- OpenAIRE
- Journal :
- Physical Review E
- Accession number :
- edsair.doi.dedup.....4559e2701a6682c036c0f84acde9d9ba