Physics in the study on economics

The current financial crisis once more demonstrates that traditional economics lacks the power of explanation and prediction. The reason for this is that economists have not developed the subject within a scientific framework. The current stage of economics has tempted a group of physicists to enter this field and form a new interdisciplinary subject, econophysics，which is expected to play an essential role in the scientific transformation of economics. In this paper, we briefly review the subject content of economics, pointing out that its theory is based on assumptions of rationality and equilibrium. Then it is shown why economics is not yet a science, since it has not been carried out according to logical positivism. We examine how physicists study economic problems by looking into the methods used and the topics discussed in the field of econophysics. Finally, we argue that transforming economic modelling should start from observation and experiments, and a better theory should be built on the basis of a reasonably designed dimensional system and an accurate perception of real economic performance.