New Perspectives in Economics: Multipliers, Statistical Entropy, and National Income

Author: Ma Lieguang
Publisher:
Publish Date: 2006-03-01
Features: This book is a groundbreaking work in economic theory, not only developing the multiplier concept in economics but also establishing a mathematical equation that links statistical entropy to national income, thereby opening up new directions in economic research. The book proposes a series of new economic perspectives: it introduces a multiplier model based on the income-expenditure chain, describing a new relationship between savings distribution and changes in national income; expresses the law of entropy using the irreversibility of income redistribution and savings distribution; points out the flaws in Keynes's equilibrium theory premise that investment equals savings; explores the chaotic phenomenon of the marginal propensity to consume, constructing a theoretical model for nonlinear economics; establishes a model of disequilibrium within Walrasian equilibrium, discussing the relationship between the randomness of equilibrium and statistical entropy; offers new interpretations of monetary theory and financial innovation, analyzing the asymmetric processes of bank loan creation and recovery, and noting that bank loans cannot be fully recovered; cites extensive statistical data and chart materials to provide new explanations for economic fluctuations and inflation; points out that the role of technological progress in promoting economic growth is constrained by economies of scale; and notes that the impact of economic policies on the economy weakens as the economic scale grows, and so on. This book is a rare and pioneering work at the forefront of innovative economic thought for economists concerned with economic theory innovation and professionals studying economic theory. By reading and learning from this book, we can change our perspective on economics.