Keywords
Thermodynamics; Labor Theory of Value; Labor Value Equation; Global Reserve Currency; Financial Stability; Employment; Asset Valuation; Productivity
Abstract
This paper illustrates that basic global economic concepts can be directly related to the First and Second Laws of Thermodynamics. We believe that all economic returns are from nothing except from current and past human expenditure of human energy; this is the result of the First Law of Thermodynamics. It is shown that everything is a product of energy in the form of labor and that the basic principle of Labor Theory of Value is still valid and this principle is validated not relying on economics and finance models, rather on thermodynamic principles. This is illustrated by the development of the Labor Value Equation based on the application of the First and Second Law of Thermodynamics and how it can impact employment, asset valuation, supply/demand, productivity, global conflict, global reserve currency and global stability.
Recommended Citation
Cardullo, M. W., & Liu, M. M. (2024). Global Thermoeconomics. Journal of Banking and Financial Economics, 2017(7), 70-89. https://doi.org/10.7172/2353-6845.jbfe.2017.1.4
First Page
70
Last Page
89
Page Count
20
Received Date
9 August 2016
Revised Date
30 October 2016
Accept Date
14 February 2016
Online Available Date
17 March 2017
DOI
10.7172/2353-6845.jbfe.2017.1.4
JEL Code
C; G; J; P; F; A
Publisher
University of Warsaw