A Thermodynamic Approach to Monetary Economics. A Revision. An application to the UK Economy 1969-2006 and the USA Economy 1966-2006
AbstractThis paper develops further monetary aspects of a model, first set out as part of a paper by the author published in 2007, concerning the application of thermodynamic principles to economics. The model is backed up by statistical analysis of quarterly data of the UK and USA economies. The model sets out relationships between price, output volume, velocity of circulation and money supply, and develops an equation to measure entropy gain in an economic system, linked to interest rates. This paper was first released in August 2008, but has now been revised to reflect current thinking
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Bibliographic InfoPaper provided by Economic Consultancy, Vocat International in its series Working Papers with number ten5a2010.
Length: 26 pages
Date of creation: Feb 2010
Date of revision:
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Web page: http://www.vocat.co.uk
Monetary; thermodynamics; economics; entropy; interest rates;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-CBA-2010-05-02 (Central Banking)
- NEP-MAC-2010-05-02 (Macroeconomics)
- NEP-MON-2010-05-02 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sousa, Tania & Domingos, Tiago, 2006. "Is neoclassical microeconomics formally valid? An approach based on an analogy with equilibrium thermodynamics," Ecological Economics, Elsevier, vol. 58(1), pages 160-169, June.
- Samuelson, Paul A, 1972.
"Maximum Principles in Analytical Economics,"
American Economic Review,
American Economic Association, vol. 62(3), pages 249-62, June.
- Samuelson, Paul A., 1970. "Maximum Principles in Analytical Economics," Nobel Prize in Economics documents, Nobel Prize Committee 1970-1, Nobel Prize Committee.
- John Bryant, 2007. "A Thermodynamic Theory of Economics," Working Papers, Economic Consultancy, Vocat International tefprv2007, Economic Consultancy, Vocat International.
- Sousa, Tânia & Domingos, Tiago, 2006. "Equilibrium econophysics: A unified formalism for neoclassical economics and equilibrium thermodynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 371(2), pages 492-512.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Bryant).
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