Statistical ensembles for money and debt
AbstractWe build a statistical ensemble representation of two economic models describing respectively, in simplified terms, a payment system and a credit market. To this purpose we adopt the Boltzmann-Gibbs distribution where the role of the Hamiltonian is taken by the total money supply (i.e. including money created from debt) of a set of interacting economic agents. As a result, we can read the main thermodynamic quantities in terms of monetary ones. In particular, we define for the credit market model a work term which is related to the impact of monetary policy on credit creation. 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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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1109.0891.
Date of creation: Sep 2011
Date of revision: Jul 2012
Publication status: Published in Physica A 391/21 (2012), pp. 4839-4849
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Other versions of this item:
- Viaggiu, Stefano & Lionetto, Andrea & Bargigli, Leonardo & Longo, Michele, 2012. "Statistical ensembles for money and debt," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(20), pages 4839-4849.
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- Aoki,Masanao & Yoshikawa,Hiroshi, 2007. "Reconstructing Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521831062.
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