Authors: Anindya Kumar Biswas
In this article, we derive relations between inflation and rate of unemployment for a set of economic systems, using a theoretical model developed under the spell of Maxwell’s electrodynamics. Inflation in a place, in the model, is proportional to the frequency of economic power flow to the place from outside. Rate of unemployment in that place is a power law function of the frequency. Relations are of power law types i.e. inflation varies inversely as a power of rate of unemployment. Consequently, we get a spectrum of inflationary exponents. Exponents obtained are 2/5, 2, 2/(5+4l), 6.7; 1/6, 1/4, 1/(2l+6), 0.26; 1/4, 1/2, 1/(2l+4), 0.61; -2/3, -2/7, 2/(4l-3), -0.2; 1, -1, 1/(2l+1), -0.4 respectively; where, l is a positive integer. We draw few representative Phillips curves i.e. graphs of inflation vs rate of unemployment, discuss about the consequences of the spectra and surmise about the relevance of CPI over WPI from the model.
Comments: 19 Pages. It's an application of a model of economics developed in analogy with theory of electrodynamics of physics
[v1] 2018-02-07 09:37:09
Unique-IP document downloads: 23 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.