{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ssrn-id318459 - The Momentum Theorem and the Momentum of...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
The Momentum Theorem and the Momentum of Money: A Philosophical Reflection on the Velocity of Money By Jiang Tao Nankai University [email protected] ABSTRACT There are some common laws in the universe. Economists widely accept the principles of Newton’s laws of motion. Specific theorems of physics are more eligible analogues to the expressions of economics. Equation of momentum can be the best analogue of equation of exchanges. The virgin form quantity theory of money reserves the principles of momentum theorem that is based on t wo cornerstones (real quantity and velocity). But modern monetary economists focus mainly on the quantity side. This is a serious violation to the principles of momentum theorem of the universal objects. To rehabilitate another desolated cornerstone and to reconstruct the superstructures based on the two cornerstones will be the crux task of the monetary economics of the 21st century. * * * * * * * * * * * * * * * * * * * * In the studies of monetary economics, the author is inspired by some principles of physics. However, it may be at first suspected by the orthodox scholars if the equations of physics appear in the economic papers. Therefore the author writes this separate paper to express the philosophical principles of my studies before the publication of a series papers. The author believes that in the universe there are some common laws governing both the movements of nature and the movements of society. The reasons are simple. From the viewpoint of history, human society is the product of the movements of nature; from the angle of microcosm, the universe is composed of the same particles. Nevertheless, the evolution of nature phenomena is much matured than that of social phenomena. So nature scientists hold great advantages of approaching the common laws of the universe than social scientists do. But social scientists may take advantages by drawing on the experiences from the nature sciences, of course not in the simple and mechanical manner but in the philosophical depth. In this paper, the author tries to introduce the principles of the momentum theorem of physics, and to analogize the principles of the momentum of money. The analysis begins with the Newton’s laws of motion, from which the momentum theorem is derived. I. Principles of Newton’s Laws of Motion 1 Though we recognize the status of relative static of objects, actually any object in the universe 1 For the introductory knowledge of physics in this paper, except the quotations from Newton’s writing, I consult with The New Encyclopedia Britannica 15 th edition; and some versions of The Encyclopedia of Physics ; and the introductory Physics Classroom on the Internet (just search for this title in any search engine).
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon