The two of the most extreme subjects on the scale have way too many common things than anyone ever expected. Physics has been an essential part of the scientific discipline since time known to man. Essentially one can say it is the art of unravelling the secrets of this vast universe one equation at a time. On the other hand, Economics is an able conductor of life changing decisions pertaining to society. It is like a game where all the players try to score the highest with respect to business. And what better than combining the master of the universe and the master of society in one!

In other words, Econophysics is the connection between behaviour exhibited by systems governed by laws of physics and business markets. “Econophysics” was coined for the first time by Dr. Mantegna and Dr. H.E.Stanley in 1994, and was established in 1999 through publishing their first book: “An Introduction to Econophysics”. Officially studied and introduced in India in an International conference held in Kolkata (1995), in recent times it seems to have taken up space in the extensive research and strategizing teams of many companies and countries.

The usage of certain physics based methods and maths has increased in economic fields. We can observe a strong resemblance between economic theories and scientific theories backed by physics. In the late 1900s, Alfred Marshall used physical concepts to describe economic equilibrium. The general theory of equilibrium in economics expresses the notion that “everything is interconnected,” an idea borrowed from physics but expanded beyond its original context. Building on earlier research, Mandelbrot applied fractal geometry to tackle the complex realities in economics. Fractals, which exhibit self-similar patterns, are found throughout nature and offer a new visual perspective for measurement. Widely used across sciences, fractal geometry has opened new frontiers. Economics, influenced by both nature and human behaviour, is particularly complex, and traditional mathematical tools often fall short. Fractal mathematics, however, provides economists with fresh insights.

Newton’s third law; “To every action there is always an equal and opposite reaction” is similar to the situation of Zero Sum economics for Adam Smith. The Zero Sum theory mathematically represents a situation where one side’s gain is exactly balanced by the other side’s loss. The total value or wealth in the system remains the same before and after the interactions, resulting in a net improvement of zero. Newton’s law of universal gravitation was applied by John Tinbergen (1962) in social sciences models. Economic models suggest that certain variables influence trade relations between countries. For example, production and population can attract trade flows from other nations. As a result, a linear econometric equation is used to estimate the GDP model.

Keynes theory of aggregate demand is very similar to Einstein’s concept of field gravitation. The flowing feature of water represents liquidity in the market and the incongruency of gases represents trade instability. The changing acceleration between two speeds indicates change in income, demand and investment.

Monetary issues are alike to scientific experiments as both deal with numbers, quantities, relation between two entities and predicting behaviours. Today, physics and maths are able to scrutinise and deal with financial aspects like never before. We can predict the movements of stock prices, interest rates, and bonds with reasonable accuracy using scientific and statistical techniques. Physics has been the key to evolve other sciences and we have simply found one of the many locks it opens.