Statistical ensembles for money and debt

Details Statistical ensembles for money and debt Statistical ensembles for money and debt

2011-09-02

arxiv.org/abs/1109.0891v1

Economy

Quantitative Finance

General Finance

Scientific paper

We build a statistical ensemble representation of an economic system which can be interpreted as a simplified credit market. To this purpose we adopt the Boltzmann-Gibbs distribution where the role of the Hamiltonian, as recently suggested in the literature, is taken by the total money supply (i.e. including money created from debt) of a set of economic agents interacting over the credit market. As a result, we can read the main thermodynamic quantities in terms of monetary ones. Furthermore, with our formalism we recover and extend some results concerning the temperature of an economic system, previously presented in the literature by considering only the monetary base as conserved quantity. Finally we study the statistical ensemble for the Pareto distribution.

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