On the Analogy of Gauge Theory of Plasticity and Economics

TL;DR

This paper explores an analogy between gauge theory of plasticity and economics, modeling market dynamics and inflation through equations similar to those in plasticity theory, providing new insights into market stabilization mechanisms.

Contribution

It introduces a novel analogy linking gauge theory of plasticity to economic market dynamics, offering a new framework for understanding inflation and market stabilization.

Findings

Equations of economic dynamics resemble plasticity equations.

Economic variables like choice, competition, and profit relate to market states.

Describes a stabilization mechanism for markets with inflation.

Abstract

We demonstrated the analogy between Economics and Gauge Theory of Plasticity and used it to describe the relationship between money supply and inflation at the economic market. The received equations of economical dynamics in phase space are similar to the plasticity equations and economic variables - choice, competition and profit correspond to the state of the market with inflation. We described the meaning of equations and the role of its variables in the stabilization mechanism of the market with inflation. The equation of market equilibrium including the Profit turnover, time changes of competition, capital and choice was discussed in detail.