This post is a reaction to recent attempt of Prof. Dr. Lee Smolin to define economy on background of agent model of gauge invariance in article named Time and symmetry in models of economic markets (PDF), which is important for AWT by its consideration of Newtonian physics in explanation of economical models:
"It is apparent that time is treated in a way analogous to one aspect of its treatment in Newtonian physics. In classical mechanics, we say that time has been geometrized or spatialized in that the time coordinate is treated just like one of the other coordinates. Motion in a d dimensional space is treated as a geometrical curve in a d + 1 dimensional space. Following this, it is natural in Arrow-Debreu (model of an economy) to treat time the way space is treated. ... The prices are treated as being set at one time, so that goods to be delivered in the future may have a different price today than the same good delivered today. Making use of this, we can say that time, like space, is treated like just another feature of a commodity."
As a LQG proponent, Prof. Smolin avoids description of multidimensional and temporal aspects of this model. Therefore his general line of reasoning still appears somewhat formal/ad-hoced for me, but it still has a good meaning in the context of AWT, which considers the spatialized definition of time, too. By AWT every concept, including time is just a manifestation of nested gradients of Aether density. Despite wonderstricken irony of some comments, here exists many apparent analogies between evolution of life, inorganic matter or human society, including economy.
For example, we can experience a gradual inflation, which is an analogy the inflation in Linde's cosmology, where it is consequence of gradual increase of vacuum density. This increase corresponds the gravitational collapse of collapsar, whose interior the vacuum appears to be formed. From insintric perspective of observer, formed by density fluctuations of such environment the space-time would expand with distance in accordance to Hubble law. This is not so surprising, because economy is energy density driven, so it can be described by dynamics of particle environment. And the energy spreading in particle environment exhibits a gauge invariance by the same way, like geometry of vacuum and particle fields.
We can illustrate it by formation of monetary economy in context of cosmic inflation. At the very beginning no money existed at all - just the exchange of various kinds of goods. By the same way, like the exchange of gravitons at the very beginning of our Universe. By quantum field theory gravitons are considered as a dual particles, playing a role of both fermions, both bosons at the same time. In primitive communism society the good has played both the role of subject of material exchange, both energetic exchange at the same time.
As the density of energy/goods exchange increased, the system did undergo a phase transition as the result of spontaneous symmetry breaking, which was followed by specialization. A two kinds of particles - bosons and fermions - emerged during inflation by the same way, like the exchange of values has separated into exchange of material gods and exchange of money, i.e. energy and the monetary economic has appeared. As the result, the density of exchange density has increased remarkably inside of human society, because it's quite easy to transfer a big amount of value via money at distance.
Even evolution of monetary economy can be understood as a process of symmetry breaking of goods condensate. The goods in primitive communism society served both like subject of trade, both like subject of exchange by the same way, like gravitons were serving both like fermions and bosons. During evolution of society in Sumerian empire 3500 - 3000 BC has separated into money (a bosons) and a goods as such. Another degree of condensation (a hadronization) of money has occurred under evolution of more complex financial derivatives (stock exchange derivatives, swaps, forward rate agreements, etc.). From this point of view, formation of money and monetary economy evolution is just a repeating of the old well-tried practice of universe, not a human invention at all.
We can see many other analogies here. The exchanging of money is followed by exchange of material stuff or services in free market economy. The falling of matter into gravitating body is always followed by radiation of energy (an accretion radiation, the meteors or radiation of matter in magnetic field of magnetars are similar effects from this perspective). If the exchange of matter isn't balanced by radiation of energy - which occurs typically for very dense bodies with small surface - a gravitational collapse may occur. Now we are experiencing a financial crisis, i.e. gravitational collapse of stock markets of high density of energy exchange, we are saying, the financial market was overheated. This situation can be predicted by appearance of tiny fluctuations, in analogy to luminosity changes of giant bright stars before their collapse. Therefore the particle based theory can serve as a tool for predicting and avoidance of stock market crashes, which makes it significant from practical reasons.
Money should be understood as a mean of value in its abstract meaning here, not as a currency. We aren't exchanging money or goods in fact, but time/energy required for their earning. Which basically means, total value of money cannot exceed man-hours of people, who have produced them under given level of technology. This connection has an important consequences for macroeconomics and further evolution of human society, as we can demonstrate later. The nonlinear ("money are attracting/earning money") and quantum wave aspects of particle models in economy we will dispute later as well.
From AWT model follows, primitive communism society is dual to "laissez-faire" capitalism, they're indistinguishable by the same way like fermion and bosons inside of graviton quantum foam. Free market economy can exist just under strong incubator of government, which carefully removes all weak or strong mutations (a monopolies, for example). Just under these artificial situations market can remain freely driven by supply-demand equilibrium.
Because individuals aren't usually willing to see/pay their global needs, their personal motivations and intelligence compensate mutually like interactions inside of large system of particles. At sufficiently general level the silly particle models can describe market society quite well even under consideration of low number of dimensions. This is partially because free market economy can handle actual prices only, it doesn't reflect future - so it's principally metastable and it undergoes a business cycle by the same way, like perceived evolution of observable Universe.
Therefore monetary inflation is tightly related to central government and legal actions by the same way, like expansion of space-time. Gradual expansion inflation of Universe prohibits the Big Bang event to occur too often, so that intelligent life has a sufficient time to develop in it. By analogous way, to keep free market stable we are forced to allow some permanent dissipation in it - or we're risking a "big bang" event, i.e. market crash. This is usually done both by centrally driven legal interventions of government, both by anti-dumping policy of private companies.