Physics – Condensed Matter – Statistical Mechanics
Scientific paper
1998-11-06
Phys. Rev. E 60, 2528-2532 (1999)
Physics
Condensed Matter
Statistical Mechanics
5 pages, 2 figures, to be published in Phys.Rev.E
Scientific paper
10.1103/PhysRevE.60.2528
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.
Bak Per
Norrelykke Simon F.
Shubik Martin
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