Articles on economic history, economics and game theory.
In the late 1990s, a term "New Economy" was in fashion. According to Brian Arthur, the pioneer of economics of complex systems, while the Old Economy was based on the law of diminishing returns, the New Economy is based on the law of increasing returns, and it means the growth without inflation that boosts up the eternal rally of NASDAQ. What is wrong with this theory?
Speculation is investment in the hope of capital gain rather than income gain. Many people consider speculators dangerous and, when the market loses its stability, some politicians make speculators the scapegoats for the crisis and try to regulate the market. Are they really responsible for it?
Why does money have value and circulate, though it does not have value in itself? I will answer this question in terms of the system theory.
What is the criterion for reforming social systems? Which one should we adopt, where we have different suggestions of improvement? Let's examine utilitarian, Pareto and Kaldor improvements.
Economists usually consider consumption opposite to production. From the viewpoint of entropy, however, there is no difference between them. You can describe both of them as an increase in entropy of environment in compensation for reducing the entropy of a system.
Is moral value, as some theories of ethics insist, different from economic value? Should the moral value always override the economic value?