If tx rate is the “velocity” of money, what physics quantities do other measures map to?
Eg:
wealth = volume?
inflation = d(density)/dt?
Interest rate = ?
Macro velocity (gdp/money supply) looks kinda like temperature
Micro (velocity of a specific dollar) = gas particle?
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This is good
Wonder if the v^2/r and i^2r formulas for power work out 🤔
And what “heat” dissipated by resistance maps to
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Marketcap = valuation multiple x earnings
Weight = gravitation x mass
When multiples crash in the market, its like gravity has increased for the companies.
valuation multiple is roughly inverse-gravity
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I think price theory lifted enough of their methods from mechanics that you can construct a legrangian for a particular market but I would have to get out textbooks in both subjects to work the analogy through. From memory I think prices might be energies.
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You can't have wealth=volume and inflation = d/dt(density). Wealth would have to be \int density, aka the mass/energy. Or if you want to keep the wealth part, inflation would have to be the cosmological constant. Ha!
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