ECONOMIC CYCLES AND THE THERMODYNAMIC UNCERTAINTY RELATIONS

Authors

  • Edgar Parker New York Life Insurance Company. The views expressed are those of the author and should not be attributed to New York Life or any of its affiliates.

Keywords:

Entropy, Landauer’s Principle, Multiscale Entropic Lifecycle, Thermodynamic Uncertainty Relations, TURs, Entropic Yield Curve, Business Cycle

Abstract

In the century and a half since Maxwell first conjured his “finite being” which Lord Kelvin subsequently dubbed a “daemon”, researchers have explored the connections between non-equilibrium thermodynamics, entropy, and information theory. In recent years various Thermodynamic Uncertainty Relations (TURs) have been derived to inform upon the relationship between the entropy production and the precision possible in thermodynamic machines and processes. In this paper the recently derived TURs are applied to a hypothetical thermodynamic economy. The TURs define the lower bound on the total entropy production of the economy. Changes in the economy’s entropy production rate have important consequences for the stability of the economic systems, the growth of inflation and play a central role in the evolution of the business cycle. This new perspective has important implications for policy makers, researchers, and other economic actors.

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References

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Published

2024-11-30

How to Cite

Parker, E. (2024). ECONOMIC CYCLES AND THE THERMODYNAMIC UNCERTAINTY RELATIONS. The Journal of Contemporary Issues in Business and Government, 30(4), 1–10. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2849

Issue

Vol. 30 No. 4 (2024): The Journal of Contemporary Issues in Business and Government

Section

Articles

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Copyright (c) 2024 Edgar Parker

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