Dealing with Worsening Macroeconomic Conditions: Insights from Quantum Physics

Commercial transactions entail the exchange of money items, whose dualistic features - both contradicting and reinforcing - flow into the economy and are documented as oscillations between actual and virtual phases in the 5000-year history of markets. While money holds a unique position at the crossroads of physical goods and conceptions of social worth, its dualistic features are felt by society (Orrell and Chlupat, 2016, pp. 169-175).

 When money is not included in the model, the model is insufficient. The 2007 GFC shows us how money objects and its creation process -- money creation, complex derivatives, and loan defaults played a key role in shaping the crisis. Thus, a holistic approach through money as an "atom" should be considered. We can also learn just like how quantum physics discovered that the universe is complex and alive, so is economics.

 Instead of having a rational economic person, we have a quantum economic man, who is not always rational; rather than having perfect competitive markets, we have markets with a combination of competition and cooperation; rather than having an intrinsic value, we have a spectrum of eigenvalues; as opposed to random economic shocks, we have uncertainty and shared responsibility. And, rather than viewing money as a passive intermediary, it should be regarded as the most powerful technology ever devised. 

 

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