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Global Thermoeconomics

Author

Listed:
  • Mario W. Cardullo

    (The Belfield Group, Inc., Alexandria, Virginia, USA)

  • Manhong Mannie Liu

    (Renmin University, Beijing, The People’s Republic of China)

Abstract

This paper illustrates that basic global economic concepts can be directly related to the First and Second Laws of Thermodynamics. We believe that all economic returns are from nothing except from current and past human expenditure of human energy; this is the result of the First Law of Thermodynamics. It is shown that everything is a product of energy in the form of labor and that the basic principle of Labor Theory of Value is still valid and this principle is validated not relying on economics and fi nance models, rather on thermodynamic principles. This is illustrated by the development of the Labor Value Equation based on the application of the First and Second Law of Thermodynamics and how it can impact employment, asset valuation, supply/demand, productivity, global confl ict, global reserve currency and global stability.

Suggested Citation

  • Mario W. Cardullo & Manhong Mannie Liu, 2017. "Global Thermoeconomics," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(7), pages 70-89, May.
    • Handle: RePEc:sgm:jbfeuw:v:1:y:2017:i:7:p:70-89
    as

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    References listed on IDEAS

    as
    1. John Bryant, 2012. "Thermoeconomics - A Thermodynamic Approach to Economics (Third edition)," Books, Economic Consultancy, Vocat International, edition 0, number tebp2012, July.
    2. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366, Decembrie.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Thermodynamics; Labor Theory of Value; Labor Value Equation; Global Reserve Currency; Financial Stability; Employment; Asset Valuation; Productivity;
    All these keywords.

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • G - Financial Economics
    • J - Labor and Demographic Economics
    • P - Political Economy and Comparative Economic Systems
    • F - International Economics
    • A - General Economics and Teaching

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