IDEAS home Printed from https://ideas.repec.org/p/voc/wpaper/ten5a2010.html
   My bibliography  Save this paper

A Thermodynamic Approach to Monetary Economics. A Revision. An application to the UK Economy 1969-2006 and the USA Economy 1966-2006

Author

Listed:
  • John Bryant

    (Vocat International)

Abstract

This 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

Suggested Citation

  • John Bryant, 2010. "A Thermodynamic Approach to Monetary Economics. A Revision. An application to the UK Economy 1969-2006 and the USA Economy 1966-2006," Working Papers ten5a2010, Economic Consultancy, Vocat International.
    • Handle: RePEc:voc:wpaper:ten5a2010
    as

    Download full text from publisher

    File URL: http://www.vocat.co.uk/TEN5A2010.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. John Bryant, 2007. "A Thermodynamic Theory of Economics," Working Papers tefprv2007, Economic Consultancy, Vocat International.
    3. Samuelson, Paul A, 1972. "Maximum Principles in Analytical Economics," American Economic Review, American Economic Association, vol. 62(3), pages 249-262, June.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bojan Dimitrijević & Ivan Lovre, 2015. "The Role of Temperature in Economic Exchange - An Empirical Analysis," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 4(3), pages 65-89.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:voc:wpaper:tech82012 is not listed on IDEAS
    2. repec:voc:wpaper:tech32012 is not listed on IDEAS
    3. repec:voc:wpaper:tech42012 is not listed on IDEAS
    4. repec:voc:wpaper:tech72012 is not listed on IDEAS
    5. repec:voc:wpaper:tech52012 is not listed on IDEAS
    6. repec:voc:wpaper:tech12012 is not listed on IDEAS
    7. repec:voc:wpaper:tech22012 is not listed on IDEAS
    8. repec:voc:wpaper:tech62012 is not listed on IDEAS
    9. repec:voc:wpaper:tech92012 is not listed on IDEAS
    10. John Bryant, 2008. "Thermodynamics and the Economic Process," Working Papers ten62008, Economic Consultancy, Vocat International.
    11. Nielsen, S.N. & Müller, F., 2009. "Understanding the functional principles of nature—Proposing another type of ecosystem services," Ecological Modelling, Elsevier, vol. 220(16), pages 1913-1925.
    12. N. J. Chater & R. S. MacKay, 2024. "Thermal Macroeconomics: An axiomatic theory of aggregate economic phenomena," Papers 2412.00886, arXiv.org.
    13. Nocetti, Diego C., 2013. "The LeChatelier principle for changes in risk," Journal of Mathematical Economics, Elsevier, vol. 49(6), pages 460-466.
    14. Christoph J. Borner & Ingo Hoffmann & John H. Stiebel, 2024. "A closer look at the chemical potential of an ideal agent system," Papers 2401.09233, arXiv.org.
    15. Vincent Carret, 2021. "Rupture and continuity in the original divide between micro-dynamics and macro-dynamics," Working Papers halshs-03242180, HAL.
    16. Martin Flodén, 2006. "Labour Supply and Saving Under Uncertainty," Economic Journal, Royal Economic Society, vol. 116(513), pages 721-737, July.
    17. Venkatasubramanian, Venkat & Luo, Yu & Sethuraman, Jay, 2015. "How much inequality in income is fair? A microeconomic game theoretic perspective," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 435(C), pages 120-138.
    18. Marlene Kim, 2018. "URPE at Fifty: Reflections on a Half Century of Activism, Community, Debate (and a Few Crazy Moments)," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(3), pages 468-486, September.
    19. Venkat Venkatasubramanian & Yu Luo, 2018. "How much income inequality is fair? Nash bargaining solution and its connection to entropy," Papers 1806.05262, arXiv.org.
    20. Arthur Matsuo Yamashita Rios de Sousa & Hideki Takayasu & Misako Takayasu, 2017. "Detection of statistical asymmetries in non-stationary sign time series: Analysis of foreign exchange data," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-18, May.
    21. K. Vela Velupillai, 2011. "Postkeynesian Precepts for Nonlinear, Endogenous, Nonstochastic, Business Cycle Theories," ASSRU Discussion Papers 1107, ASSRU - Algorithmic Social Science Research Unit.
    22. Matthias Aistleitner & Jakob Kapeller & Stefan Steinerberger, 2018. "Citation Patterns in Economics and Beyond," Working Papers Series 85, Institute for New Economic Thinking.
    23. Kombarov, Sayan, 2021. "Action in Economics: Mathematical Derivation of Laws of Economics from the Principle of Least Action in Physics," MPRA Paper 112474, University Library of Munich, Germany.
    24. George, Michael, 2007. "Predicting the Profit Potential of a Microeconomic Process: An Information Theoretic/Thermodynamic Approach," MPRA Paper 4816, University Library of Munich, Germany.
    25. 'Eric Herbert & and Gael Giraud & Aur'elie Louis-Napol'eon & Christophe Goupil, 2022. "Macroeconomic Dynamics in a finite world: the Thermodynamic Potential Approach," Papers 2204.02038, arXiv.org, revised May 2022.
    26. K. Vela Velupillai, 2012. "Iteration, Tâtonnement, Computation and Economic Dynamics," ASSRU Discussion Papers 1213, ASSRU - Algorithmic Social Science Research Unit.
    27. A. Madureira & F. Hartog & N. Baken, 2016. "A holonic framework to understand and apply information processes in evolutionary economics: survey and proposal," Netnomics, Springer, vol. 17(2), pages 157-190, September.
    28. Elena Ramírez Barrios & Juan G. Díaz Ochoa, 2009. "Imperfect Coordination In Optimization," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 527-538.
    29. M. Mosca, 2001. "La "mentalit industriale" di Angelo Marescotti," Working Papers 412, Dipartimento Scienze Economiche, Universita' di Bologna.

    More about this item

    Keywords

    Monetary; thermodynamics; economics; entropy; interest rates;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voc:wpaper:ten5a2010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John Bryant (email available below). General contact details of provider: http://www.vocat.co.uk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.