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Particle-Hole Creation in Condensed Matter: A Conceptual Framework for Modeling Money-Debt Dynamics in Economics

2025-04-15 · Bumned Soodchomshom

We propose a field-theoretic framework that models money-debt dynamics in economic systems through a direct analogy to particle-hole creation in condensed matter physics. In this formulation, issuing credit generates a symmetric pair-money as a particle-like excitation and debt as its hole-like counterpart-embedded within a monetary vacuum field. The model is formalized via a second-quantized Hamiltonian that incorporates time-dependent perturbations to represent real-world effects such as interest and profit, which drive asymmetry and systemic imbalance. This framework successfully captures both macroeconomic phenomena, including quantitative easing (QE) and gold-backed monetary regimes, and microeconomic credit creation, under a unified quantum-like formalism. In particular, QE is interpreted as generating entangled-like pairs of currency and bonds, exhibiting systemic correlations akin to nonlocal quantum interactions. Asset-backed systems, on the other hand, are modeled as coherent superpositions that collapse upon use. This approach provides physicists with a rigorous and intuitive toolset to analyze economic behavior using many-body theory, laying the groundwork for a new class of models in econophysics and interdisciplinary field analysis.

📄 PDF Abstract BibTeX arXiv:2504.12340

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