2008/10/02

Prediction Euro-US$ exchange rate

Using a thermodynamic point of view, here you all have a prediction for the next five years of the evolution of US$ versus Euro. Thermodynamics has the power to neglect the subtleties of a problem and take into account the important forces that describe the dynamics of a very complex system. Predicting macroeconomic behavior in the international market is supposed to be a miracle. Nobody can do that and in no way can it be done.

Nevertheless here is the chart, and only time can say if it is correct or not. If so, an important theorem will be asserted; the theorem by which this prediction is based on. If, eventually, time proofs the correctness of the prediction and the theorem, the miracle of economic forecast will become science.



Thermoeconomics is a branch of Econophysics, referring to the special case of applying Thermodynamics to Economics. It is not difficult to understand the relation between thermodynamics and macroeconomics. Let's see: former thermodynamics studied the dynamics of gases. A gas is composed of atoms. The movement of a single atom may be changed by an external influence, the same way one stock may be bought or sell by an individual at a given moment. Both interferences alter the dynamics of respective systems: gas and finances. The alteration is thorough because in both cases affects to the whole system eventually. Every other atom position and velocity in the gas become different, once changed one particular atom status. The same happens in the economic field; every stock value later may be different after changing one given value, no matter how small or big it is this alteration. Nevertheless, macro variables remains exactly the same after the interference, in the gas and in the financial model. They both are not perturbed significantly by single actions at the micro-level. The macro-dynamics of both systems depends upon other forces, not upon atomic subtleties. You may learn more on the subject at "Statistical Physics and Economics" by Michael Schulz.

No comments: