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Particle-Hole Creation in Condensed Matter: A Conceptual Framework for Modeling Money-Debt Dynamics in Economics

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  • Bumned Soodchomshom

Abstract

We propose a field-theoretic framework that models money-debt dynamics in economic systems through a direct analogy to particle-hole creation in condensed matter physics. In this formulation, issuing credit generates a symmetric pair-money as a particle-like excitation and debt as its hole-like counterpart-embedded within a monetary vacuum field. The model is formalized via a second-quantized Hamiltonian that incorporates time-dependent perturbations to represent real-world effects such as interest and profit, which drive asymmetry and systemic imbalance. This framework successfully captures both macroeconomic phenomena, including quantitative easing (QE) and gold-backed monetary regimes, and microeconomic credit creation, under a unified quantum-like formalism. In particular, QE is interpreted as generating entangled-like pairs of currency and bonds, exhibiting systemic correlations akin to nonlocal quantum interactions. Asset-backed systems, on the other hand, are modeled as coherent superpositions that collapse upon use. This approach provides physicists with a rigorous and intuitive toolset to analyze economic behavior using many-body theory, laying the groundwork for a new class of models in econophysics and interdisciplinary field analysis.

Suggested Citation

  • Bumned Soodchomshom, 2025. "Particle-Hole Creation in Condensed Matter: A Conceptual Framework for Modeling Money-Debt Dynamics in Economics," Papers 2504.12340, arXiv.org, revised Apr 2025.
  • Handle: RePEc:arx:papers:2504.12340
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    References listed on IDEAS

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    4. Ben S. Bernanke, 2020. "The New Tools of Monetary Policy," American Economic Review, American Economic Association, vol. 110(4), pages 943-983, April.
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