Conservation laws, financial entropy and the Eurozone crisis

William Cockshott () and David Zachariah

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2014, vol. 8, No 2014-5, 55 pages

Abstract: The article starts by examining the idea of conservation laws as applied to market economies. It formulates a measure of financial entropy and gives numerical simula-tions indicating that this tends to rise. We discuss an analogue for free energy released during this process. The concepts of real and symbolic appropriation are introduced as a means to analyse debt and taxation. We then examine the conflict between the conservation laws that apply to commodity exchange with the exponential growth implied by capital accumulation and how these have necessitated a sequence of evolutionary forms for money, and go on to present a simple stochastic model for the formation of rates of interest and a model for the time evolution of the rate of profit.

Keywords: Entropy; Conservation-law; Financial crisis (search for similar items in EconPapers)
JEL-codes: G01 (search for similar items in EconPapers)
Date: 2014
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http://dx.doi.org/10.5018/economics-ejournal.ja.2014-5
https://www.econstor.eu/bitstream/10419/91617/1/777546590.pdf (application/pdf)

Related works:
Working Paper: Conservation laws, financial entropy and the Eurozone crisis (2013)
Working Paper: Conservation laws, financial entropy and the eurozone crisis (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:20145

DOI: 10.5018/economics-ejournal.ja.2014-5

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