Turbulence and Volatility

Just happened to notice this article via Bloomberg:

https://www.bloomberg.com/view/articles/2018-01-29/this-physics-breakthrough-could-help-save-the-world

@article{Barkley-2015,
doi = {10.1038/nature15701},
title = {The rise of fully turbulent flow},
author = {Barkley, Dwight; Song, Baofang; Mukund, Vasudevan; Lemoult, Grégoire; Avila, Marc; Hof, Björn},
publisher = {Nature Publishing Group},
journal = {Nature},
issnp = {0028-0836},
issne = {1476-4679},
year = {2015},
month = {10},
day = {21},
volume = {526},
issue = {7574},
page = {550–553},
url = {http://gen.lib.rus.ec/scimag/index.php?s=10.1038/nature15701},
}

Bloomberg’s interest is odd. Hopes for 10% efficiency gains “could help save the world”.

My interest also odd. Vague musing that this sort of fluid mechanics is the kind of approach needed for understanding relations between “laminar flow” of smoothly expanded reproduction with low volatility and phase shift to puffs of turbulence and then fully turbulent non-laminar flow as velocity (turnover) exceeds structural constraints of current technology (reynolds numbers depending on pipe width etc) with consequent sharp reduction in turnover. Presumably there are velocity gradients in there somewhere. Possible analogies to yield curves?

Don’t claim to understand it at all. Assume economics requires even more of an empirical approach since cannot even solve Napier Strokes equations for simple fluids in pipes and ducts. But also musing that expressing the empirical laws mathematically may need to be guided by the same sort of mathemetical theorising.

Gets far worse with rheology and “cracking” in crises based on less “fluid” features of fixed capital plant (but still with “plasticity” and “elasticity”) and worse still given “chemical” and “biological” interactions (mergers and acquisitions, interaction with wider social changes etc etc) alongside the merely “mechanical”.

Nevertheless, continuum mechanics seems a necessary step past both the sort of mechanics, including statistical mechanics that mainstream economics and finance is largely based on. Fluid mechanics a necessary step before rheology.

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