THERMOECONOMICS - Vocat International Ltd

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Copyright: John Bryant, VOCAT International Ltd 2012, for personal use only.
⎛ dN dI ⎞ ⎛
⎜ − ⎟ = ⎜ds
⎝ N I ⎠ ⎝
money
dT ⎞
− ⎟
T ⎠
(5.23)
It will be noted that this equation also has the same format as in our initial
money hypothesis set out at equation (5.18). Thus the rate of change in
money supply is equated to interest rates less the rate of change in the
velocity of circulation plus the entropy change.
Figures 5.16 and 5.17 illustrate equations (5.22) and (5.23) for the UK and
US economies:
Figure 5.16 Output value rate of chang dG/G, interest rates i and entropy change ds.