Tag Archives: Economics

Little by Little

Posted on 02/02/2012 by

Sorry for the lack of posts recently – I have been wading through Political Ponerology (see the last post), and through a new Gorton paper on the constancy of risk free assets as a percentage of all financial assets at … Continue reading →

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Smart Meters, Smart Grid, Smart New Money…

Posted on 27/11/2011 by

55% of households in the US are expected to have Smart Meter installations by 2015. Europe is ahead of the US. This post speculates that in an energy (as opposed to capital) constrained economy of the future, Smart Grids and … Continue reading →

Posted in Society, Uncategorized | Tagged , , | 48 Comments

Demographic Destiny and NIRP: Monetarist Economics Edition

Posted on 09/11/2011 by

Wonk Alert! “There is nothing theoretically impossible about a negative natural rate of interest. Even a very negative natural rate of interest.” That is the kind of thing I would typically write, but this time the words are not mine.

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Financial Equilibrium, Regime Change and Unreliable Money

Posted on 20/10/2011 by

In the previous post I noted that the 40 year high in market serial correlation implies that we are approaching the financial of equivalent of thermodynamic equilibrium. Negative serial correlation implies that todays returns tend to be the opposite of … Continue reading →

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S^4: Correlation and Heat Death, Part One

Posted on 09/10/2011 by

In order to bring this series of posts on entropy and finance to a temporary close I refer you to this article at FT Alphaville. The article quotes a Chris Cole from Artemis Capital Management: “All we have left to … Continue reading →

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China, Stagflation and Population

Posted on 19/09/2011 by

Stagflation In the 1970s the USA and many western nations experienced the famous “stagflation” that saw rampant inflation and widespread negative real interest rates. The rate of credit growth during this period was getting on for double that of the … Continue reading →

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Explain this: P=Ce^rt

Posted on 16/09/2011 by

The New Arthurian Economics blog, which involves a retired guy constructing lots of wonderful charts from FRED data and then using them to argue that we have too much debt and too little money, talks among other things about this … Continue reading →

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S^3: Work, Inflation and Information

Posted on 11/09/2011 by

Getting to the Point This post now introduces our financial system in terms of the entropic, thermodynamic basis outlined for the underlying civilisation in prior posts and sets out a hopefully fundamental model to understand the links between our financial … Continue reading →

Posted in Financial Thermodynamics | Tagged , | 4 Comments

SNB attempts to counter thermofinancial equilibrium

Posted on 06/09/2011 by

The FT has a great, succinct piece that expresses in real world terms the concepts I’m outlining on this blog. Please scan, Saving Switzerland from the Swissie

Posted in Financial Thermodynamics | Tagged | 13 Comments

Fractal Markets Visualised

Posted on 02/09/2011 by

Steve Keen, bless his soul, has an absolutely fantastic presentation on fractal markets, chaos and equilibrium (swear word as far as Steve is concerned), which I have linked below. WARNING – THIS WILL

Posted in Financial Thermodynamics | Tagged , | 3 Comments