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

Author: Ma Lieguang
Publisher:
Publish Date: 2006-04-01
Features: This book is a pioneering work in economic theory, not only developing the multiplier concept in economics but also establishing a mathematical equation linking statistical entropy to national income, thereby opening up new directions in economic research. The book proposes a series of new economic perspectives: introducing a multiplier model based on the income-expenditure chain, describing a new relationship between savings distribution and changes in national income; expressing the law of entropy through the irreversibility of income redistribution and savings distribution; pointing out the flaws in Keynes's equilibrium theory premise that investment equals savings; exploring the chaotic phenomenon of the marginal propensity to consume and constructing a theoretical model for nonlinear economics; establishing a non-equilibrium model within Walrasian equilibrium, discussing the relationship between the randomness of equilibrium and statistical entropy; offering 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; citing extensive statistical data and chart materials to provide new explanations for economic fluctuations and inflation; highlighting that the role of technological progress in promoting economic growth is constrained by economies of scale; and noting that the impact of economic policies on the economy weakens as the economic scale grows, and so on. This book is a rare and groundbreaking work for economists and professionals studying economic theory who are interested in innovative economic theories. By reading and learning from this book, our perspective on economics can be transformed. This book is a pioneering work in economic theory, not only developing the multiplier concept in economics but also establishing a mathematical equation linking statistical entropy to national income, thereby opening up new directions in economic research. The book proposes a series of new economic perspectives: introducing a multiplier model based on the income-expenditure chain, describing a new relationship between savings distribution and changes in national income; expressing the law of entropy through the irreversibility of income redistribution and savings distribution; pointing out the flaws in Keynes's equilibrium theory premise that investment equals savings; exploring the chaotic phenomenon of the marginal propensity to consume and constructing a theoretical model for nonlinear economics; establishing a non-equilibrium model within Walrasian equilibrium, discussing the relationship between the randomness of equilibrium and statistical entropy; offering 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; citing extensive statistical data and chart materials to provide new explanations for economic fluctuations and inflation; highlighting that the role of technological progress in promoting economic growth is constrained by economies of scale; and noting that the impact of economic policies on the economy weakens as the economic scale grows, and so on. This book is a rare and groundbreaking work for economists and professionals studying economic theory who are interested in innovative economic theories. By reading and learning from this book, our perspective on economics can be transformed.