Epstein Secrets

lage surrounded on all sides by fire, of afterwards when you discover there isn't a tree standing for twenty miles in any direction. In this light, Cooper's suggestion that central banks should aim for a pattern of small business cycles is eminently sensible. Simply reducing leverage and excess liquidi

mp/econophysics/abstracts.html Clementi F, Gallegati M, 2005. Power law tails in the Italian personal income distribution. Physics A 350, 427-438. Cooper G, 2008. The origin of financial crises: Central banks, credit bubbles and the efficient market fallacy. London: Harriman House. Corbett _I, Jenkinso

ropy, first proposed by Georgescu-Roegen have been treated as fundamental truths. Unfortunately these precepts are trivially mistaken. The paper of Ayres & Nair [Ayres & Nair 1984] provides a typical example. I have found this paper profoundly useful in guiding my ideas as to how to link the mathematics of e

as include recent research in market microstructure, liquidity, post-Keynesian pricing theory as well as the work of Foley, Keen, Smithers, Shiller, Cooper, Pettis, Pepper & Oliver, Mehrling, Lyons and others. Neoclassical economics, while forming an intellectually beautiful framework, has proved of l

negentropy created in the products of the firms. Essentially figures 1.3.5 to 1.3.7 bring together the economic and physical diagrams discussed in Ayres & Nair [Ayres & Nair 1984]; so that the circulation of wealth and money complies with the laws of physics as well as the laws of finance. The discussions o

ciers, people such as Pettis, Shiller, Smithers, Cooper, Pepper & Oliver have then made insightful attemp

nsense. However the concept of absolute value is not nonsense, it is in fact very powerful. The concept of 'negentropy' as value, as articulated by Ayres & Nair [Ayres & Nair 1984] for example, is not just basic common sense; it works as a theoretical approach, as evidenced by the models in part A. Once the