Economics made simple with physics models

How would you go about understanding how markets can suddenly be gripped by panic? To physicists, using a model originally developed to explain magnetism might make sense. Yet, economists may find this extremely counter-intuitive. Both physical and economic phenomena may possess universal features that could be uncovered using the tools of physics. The principal difference is that in economic systems – unlike physical ones – current actions may be influenced by the perception of future events. The latest issue of EPJ Special Topics examines the question as to whether econophysics, a physics-based approach to understanding economic phenomena, is more useful and desirable than conventional economics theories.