This article continues a series of online publications on the natural science foundations of the global economy. Physical macroeconomics includes a logically consistent set of concepts supported by macroeconomic empirical evidence.The central concept is that the economy is a social living system...

The paper continues a series of publications on the natural science foundations of the global economy. Physical macroeconomics treats the global economy as a living system, formed during biological and socio-economic evolution.In this Part VI of physical macroeconomics, qualitatively...

The paper continues a series of publications on the natural science foundations of the global economy. Physical macroeconomics treats the global economy as a living system, formed during biological and socio-economic evolution.In this part of physical macroeconomics, the energy sources of the...

The principle of system similarity (isomorphism) between economic value and thermodynamic free energy is discussed. Based on this principle, macroeconomic efficiency is defined as the ratio of GDP and primary energy. It is demonstrated that moderate inflation and macroeconomic efficiency growth...

Four principles of living systems (openness, isomorphism, feedbacks and steady state) formulated by Bertalanffy in his General System Theory, are fully applicable to the economy. In addition to these principles, we introduce the fifth one – the creation of information. By creating information...

This article is the leading one in a series of articles describing the results of 15 years of independent research by the author. This series presents the updated and expanded results of these studies, which were previously presented in the book “Natural Science Foundations of Macroeconomics:...

This article is the second one in a series of publications representing the natural science foundations of macroeconomics. Classical thermodynamics is the most important natural science justification for physical macroeconomics. The general properties of the global economy, as compared with the...

A major factor behind this crisis is financialization of the system, with a growing disconnect between the monetary and the real sector. Some proponents of the Islamic finance claim such financial crisis would have been avoided, if asset-backed Islamic finance were adopted. However, while...

Political economists debate the existence of a political business cycle (PBCs), in which politicians stimulate the economy to improve their re-election chances, only to cause a post-election slowdown. For developing countries, scholars have found evidence of election-year policy tinkering. Yet...

This paper presents a fear theory of the economy, based on the interplay between fear of rare disasters and the interest rate on safe assets. To do this, I study the macroeconomic consequences of government-administered interest rates in the neoclassical real business cycle model. When the...