Econophysics, the rise of a new branch.

By Bijin Joseph

 

When the pandemic hit us and when the lockdown commenced, warnings of a great recession started to spread and while I write this article, the world is still in lockdown and the worries of a financial crisis are still in the minds of people. As an aspiring physicist, my only knowledge about economics comes from overheard conversations, online courses and college programs and I was wondering of how I could contribute to this situation. Although one would be sceptical about the juxtaposition of Physics and Economics, a google search will show “Econophysics” as the top result.


Econophysics is a transdisciplinary (across different fields) research field, in which theories and methods originally developed by physicist are applied to solving problems in economics[1]. The term was coined, not long ago, by H Eugene Stanley in 1995 during a statistical physics conference in Calcutta. However, the concepts in physics have been used to understand the mechanics of economics for a very long time and a lot of physicists have been involved in the financial field. Chanakya, the pioneer economist of India and, the advisor and Prime Minister of Emperor Chandra Gupta, authored the Arthashastra (the science of economics)[2]. Nicolaus Cope