Gauge Theory of Economics: Difference between revisions

From The Portal Wiki
Line 10: Line 10:


== Supplemental Materials ==
== Supplemental Materials ==
* [https://youtu.be/4_brHQRMu9k Stanford University: Systems Architecture, Kabuki Capitalism, and the Economic Manhattan Project (YouTube)]
* '''[https://youtu.be/4_brHQRMu9k Stanford University: Systems Architecture, Kabuki Capitalism, and the Economic Manhattan Project (YouTube)]'''
* [https://youtu.be/h5gnATQMtPg Gauge Theory and Inflation: Enlarging the Wu-Yang Dictionary (YouTube)]
* '''[https://youtu.be/h5gnATQMtPg Gauge Theory and Inflation: Enlarging the Wu-Yang Dictionary (YouTube)]'''
* [http://pirsa.org/09050047 A Science Less Dismal: Welcome to the Economic Manhattan Project]
* [http://pirsa.org/09050047 A Science Less Dismal: Welcome to the Economic Manhattan Project]
** [http://pirsa.org/displayFlash.php?id=09050047 Video]
** [http://pirsa.org/displayFlash.php?id=09050047 Video]

Revision as of 14:42, 10 February 2020

Gauge theory is all you need to break out of the economics flatland. The following is an equation that Eric Weinstein talked about. We are going to break it down together and picture the meaning of each part in a geometrical and intuitive way. The results of this work will be interesting for the present economics community.

$$q = \frac{ {p_0}\cdot{q} }{ {p_0}\cdot{q_0} } q_0 + (q - \frac{ {p_0}\cdot{q} }{ {p_0}\cdot{q_0} } q_0)$$

where we label the first term as Reference Basket and the second one as Barter.

Suppose that we live in a world where there are only 3 different types of items for sale: apples, berries and cherries (A, B and C respectively.) Say today we pick up our basket and go to the market. At the market, the price of each item is posted up as a number on the wall where we can see. So, we represent the prices by a $${1}\times{3}$$ row vector $$p$$. On the other hand, we buy different quantities of each item and so a $${3}\times{1}$$ column vector $$q$$ denotes the list of 3 quantities for items A, B and C.

The next day, we go back to the market and now we are interested in measuring price changes.

Supplemental Materials

MW-Icon-Warning.png This article is a stub. You can help us by editing this page and expanding it.