Sunday, 11 February 2018

Review: Money: Physics and Distributive Justice

Money: Physics and Distributive Justice Money: Physics and Distributive Justice by Oded Kafri
My rating: 3 of 5 stars

This book has a very interesting premise. Physics is the study of laws of nature. Economics is the study of money and finance. Can it be explained through the laws of physics? More importantly distributive justice.

Oded Kafri says that the concept of money has not been defined and hence economics is centuries behind the hard sciences. Now he presents the concept of money as two of physics principles:

1. Money as Energy- the Gas Economy : This is similar to Maxwell-Boltzman bell curve. But this concept has many issues.
2. Money as Heat: This is a better system.

There are many interesting concepts like in near future there will be no cash transfers. The distribution of money of a nation is universal and independent of total wealth of a nation. The system of constraints weather by Governments or religion or moral principles tries to limit money’s movement.

The author claims that it is widely agreed nowadays that wealth should not be equally distributed.

The book is interesting but somewhat farfetched. There may be a parallel between energy or heat and money movement but it made the book very complex. It assumed that the reader is well versed with both Physics and economics. Though the author gives a disclaimed that this knowledge is not required, that is not correct. The book is more for an academic exercise and amusement and not for general readers.

Still the book gives some interesting points to ponder. 3/5 stars.

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