We consider dynamics of financial markets as dynamics of expectations and discuss such a dynamics from the point of view of phenomenological thermodynamics. We describe a financial Carnot cycle and the financial analog of a heat machine. We see, that while in physics a perpetuum mobile is absolutely impossible, in economics such mobile may exist under some conditions.
Physica A Statistical Mechanics and its Applications
- Pub Date:
- May 2005
- Condensed Matter - Other Condensed Matter;
- Physics - Physics and Society;
- Quantitative Finance - General Finance
- Physica A, 350, 487-490 (2005)