Tuesday, November 13, 2012

Quantum money

It has been a while since we last discussed then latest developments in econophysics, the field trying to blend the methods of Physics (and sometimes its lessons) into Economics. The most mysterious and often counter-intuitive field of Physics is Quantum Physics. The same could be say of Monetary Economics within Economics. So why not study the Quantum Physics of Money?

Stephen Ternyik does this for us, and the result is expectedly disturbing and unintelligible. I spent more time than I should on trying to understand the abstract, and the paper itself was not too helpful. SO here is the abstract, and maybe a reader can translate this into something that makes sense to me:
The marginal minimization of the reserve requirement on demand deposits is the single cyclical cause behind the long-term crises of the monetary production economies and progressively decreases the time value of money on economic productivity. The total economic cost of this monetary and banking system (fiat credit a priori via private commercial banks; fiat money a posteriori via public monetary police) is the loss of dynamic efficiency in the space-time production structure, i.e. the quantitative increase of entropic volatility in the
monetary production economy equals the quantitative increase of the fiat credit quantum (mechanically and thermodynamically). A radical maximization of the reserve requirement on demand deposits is the basic economic remedy for the temporal monetary stabilization of the space-time production structure, according to the natural/physical laws of human economic productivity.

8 comments:

Vilfredo said...

Quantum physics thrives on obfuscation. No different here.

Anonymous said...

There is another paper by this author on the topic, just as refreshing as the first: The Monetary Quantum

ivansml said...

Bashing econophysics is of course fun, but this is not econophysics, it's clearly work of a crackpot - no academic affiliation, bad typesetting, grandiose claims without any model or data, piles of technical terms that make no sense, etc. What's the point of drawing attention to garbage like this?

Anonymous said...

Hahahahahaha! That is hilarious.

Anonymous said...

Oh, yes. This is one of those people who can solve all the world's problem just with the right money (policy). Yeah sure.

Anonymous said...

Is there any serious research being done in Econophysics? The one presented here is pretty discouraging.

Anonymous said...

Is this a joke?

ooker777 said...

I'm a graduated student who study theoretically physics. I'm interesting to expand my knowledge border and find econophyscics as well as your blog. So basically you economists see this one as a garbage? I don't know if this article is good or not, but if you tell me more about economy concept, I hope I can help you understand physics concept. Also, maybe first econophysics models are not good to explain economic trends, would we wait to see how much helpful it is?