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Thermo-finance: the link between financial engineering and financial stability


 
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1. Title Title of document Thermo-finance: the link between financial engineering and financial stability
 
2. Creator Author's name, affiliation, country Omar Fassal; EMLYON Business School; Morocco
 
3. Subject Discipline(s)
 
3. Subject Keyword(s) Econophysics ; Financial stability ; Financial engineering
 
4. Description Abstract Schinckus (2010) defines econophysics as a new approach which applies physics concepts to understand economic and financial phenomena; this paper belongs to the school of econophysics. The goal of this paper is to apply the three principles of thermodynamics into the field of finance. The qualitative results obtained are the three principles of financial engineering which describe the evolution, the dispersion, and the measure of risk inside the financial system. We push further the reasoning to describe the three axiomatic laws of finance which put the three principles observed into motion. Finally, we describe the three financial engineering construction rules that have to be respected, in order to create financial engineering products and solutions that are sustainable over time, thereby enhancing systemic financial stability.
 
5. Publisher Organizing agency, location
 
6. Contributor Sponsor(s)
 
7. Date (YYYY-MM-DD) 05-10-2019
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format
 
10. Identifier Uniform Resource Identifier https://revues.imist.ma/index.php/MJPAS/article/view/16774
 
10. Identifier Digital Object Identifier (DOI) https://doi.org/10.48383/IMIST.PRSM/mjpas-v5i2.16774
 
11. Source Title; vol., no. (year) Maghrebian Journal of Pure and Applied Science; Vol 5, No 2 (2019)
 
12. Language English=en en
 
13. Relation Supp. Files
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
15. Rights Copyright and permissions Copyright (c) 2019 Maghrebian Journal of Pure and Applied Science