New Perspectives on Economics - Multiplier, Statistical Entropy, and National Income

Author: Ma Lieguang
Publisher:
Publish Date: 2006-04-01
Features: This book is an innovative work in economic theory, not only developing the multiplier concept in economics but also establishing a mathematical equation that correlates statistical entropy with national income, thereby opening up new directions in economic research. The book proposes a series of new economic perspectives: on the basis of the income-expenditure chain, it introduces a multiplier model that describes the new relationship between savings distribution and changes in national income; it expresses the law of entropy using the irreversibility of income redistribution and savings distribution; it points out the flaws in Keynes's equilibrium theory premise that investment equals savings; it explores the chaotic phenomenon of the marginal propensity to consume and constructs a theoretical model for nonlinear economics; it establishes a non-equilibrium model within Walrasian equilibrium, discussing the relationship between the randomness of equilibrium and statistical entropy; it offers new interpretations of monetary theory and financial innovation, analyzing the asymmetric process of bank loan creation and recovery, pointing out that not all bank loans can be fully recovered; it cites extensive statistical data and chart materials to provide new explanations for economic fluctuations and inflation; it highlights that the role of technological progress in promoting economic growth is constrained by economies of scale; it 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 for economists and professionals studying economic theory who are interested in innovative thinking in economic theory. By reading and learning from this book, we can change our perspective on economics.