Economics made simple with physics models
How would you go about understanding how markets can suddenly be gripped by panic? To physicists, using a model originally developed to explain magnetism might make sense. Yet, economists may find this extremely counter-intuitive. Both physical and economic phenomena may possess universal features that could be uncovered using the tools of physics. The principal difference is that in economic systems - unlike physical ones - current actions may be influenced by the perception of future events. T
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