A CURRENT PERSPECTIVE ON THE RELATIONSHIP BETWEEN ECONOMICS AND PHYSICS

Abstract

If we recognize that the foundations of modern economics were laid by Adam Smith's famous work "The Wealth of Nations", we see that economics has been in interaction with other sciences for almost two and a half centuries. Within these sciences, the place of physics is undoubtedly several steps ahead of the others. In the process of this interaction, economic theory has also been influenced by paradigm shifts in physics and has developed in a continuous evolution. By the end of the twentieth century, the concept of econophysics emerged, as statistical physics was mainly used by various scientists to understand economic phenomena. This article discusses the relationship between econophysics and the field of economics, especially financial economics. Why econophysics is considered a different science is explained based on the working methods and assumptions of both scientists.