Термодинамиката в международните финанси
Thermodynamics in International Finance

Author(s): Stefan Petrov
Subject(s): Politics / Political Sciences, Politics, Economy, Supranational / Global Economy, Business Economy / Management, Economic policy, International relations/trade, EU-Approach / EU-Accession / EU-Development, Financial Markets, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: thermodynamics; international finance; econophysics; entropy and enthalpy; financial markets; European Union integration; euro area accession; Western Balkans, thermodynamic economic indicators
Summary/Abstract: This monograph develops an interdisciplinary framework that applies core thermodynamic principles to the analysis of international finance, monetary integration and financial market dynamics. Building on concepts such as energy, entropy, enthalpy, irreversibility and equilibrium, it formulates thermodynamic analogies for capital flows, price formation, financial stability and long run growth constraints. The first part synthesizes theoretical foundations, linking system theory, econophysics and macro financial modeling to derive thermodynamic economic indicators. The second part proposes and implements a five stage thermodynamic methodology for assessing economic and financial integration, with a focus on Bulgaria’s accession to the euro area and the integration trajectories of Western Balkan countries into the European Union. Using quarterly data, the study computes and compares thermodynamic indicators across countries and scenarios, identifying windows of optimal integration and key risks to stability. The results provide a novel decision support tool for policymakers and researchers in international finance.

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