Law of Motion for Inflation: An Analogy to Newtonian Mechanics

Harashima, Taiji (2026): Law of Motion for Inflation: An Analogy to Newtonian Mechanics.

Abstract

This paper proposes that inflation dynamics follow a law of motion analogous to Newtonian mechanics, driven by a "repulsive force" between the government and households. While the government attempts to manipulate the real interest rate toward its preferred level, households resist to maintain their own, resulting in a strategic tug-of-war. The study demonstrates how this force-based inflationary motion mirrors Newtonian laws—specifically inertia, acceleration, and action-reaction. Additionally, the concept of kinetic energy is employed to analyze central bank strategies for achieving price stability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Central bank; Inflation acceleration; Law of motion for inflation; Maximum degree of comfortability; Newtonian mechanics
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General

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