| | |
| | |
Stat |
Members: 3645 Articles: 2'504'928 Articles rated: 2609
25 April 2024 |
|
| | | |
|
Article overview
| |
|
Financial heat machine | Andrei Khrennikov
; | Date: |
26 Aug 2004 | Journal: | Physica A, 350, 487-490 (2005) | Subject: | Other | cond-mat.other | Abstract: | We consider dynamics of financial markets as dynamics of expectations and discuss such a dynamics from the point of view of phenomenological thermodynamics. We describe a financial Carnot cycle and the financial analogue of a heat machine. We see, that while in physics a perpetuum mobile is absolutely impossible, in economics such mobile may exist under some conditions. Our thermodynamical model for the financial market induces a rather unusual interpretation of the role of financial crises. In the opposition to the common point of view, in our model financial crises play the crucial role in functioning of the modern financial market. This is an important (concluding) stage of a financial cycle that is analogous to the stage of cooling in the ordinary Carnot cycle. A financial cycle could not be completed without such a stage as well as the ordinary Carnot cycle. Thus, inspite its destructive (at the first sight) consequences the stage or financial crises is as well important as the stage of "boiling of the financial market" ("heating of expectations"). | Source: | arXiv, cond-mat/0408560 | Services: | Forum | Review | PDF | Favorites |
|
|
No review found.
Did you like this article?
Note: answers to reviews or questions about the article must be posted in the forum section.
Authors are not allowed to review their own article. They can use the forum section.
browser Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)
|
| |
|
|
|
| News, job offers and information for researchers and scientists:
| |