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arXiv · 2510.07544

Economic thermodynamics and inflation

Abstract

This study presents a computational and theoretical framework inspired by thermodynamic principles to analyze the dynamics of economic inflation within adiabatic and non-adiabatic systems. In a framework referred to as developmental symmetry, inflation is formulated as a scalar field evolving through continuity equations, drawing an analogy with the Raychaudhuri equation in gravitational dynamics. The results show that adiabatic systems fail to reach equilibrium, while non-adiabatic systems can evolve toward stable states over time. The model successfully reproduces observed inflationary regimes-from hyperinflation to stable low-inflation phases-with characteristic transition periods of about a decade. These results indicate that production continuity and controlled monetary flow are crucial for achieving stability in complex economic systems, linking thermodynamic balance to macroeconomic equilibrium.

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İdris Demir, Ali İhsan Keskin. 2025-10-08. Economic thermodynamics and inflation. https://arxiv.org/abs/2510.07544

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