Tracing a Faint Fingerprint of the Invisible Hand?

Title: Tracing a Faint Fingerprint of the Invisible Hand?

Abstract: This research aimed to understand the monetary flow dynamics in the economy by measuring the rate of monetary flow disequilibration. The study proposed that the rate of disequilibration could be used as a measure to trace the progressive movement of the economy. The research analyzed the recorded flow of funds accounts from both the Bank of Japan and the Federal Reserve Board of the United States over the last fifty years.

Research Question: Can the rate of monetary flow disequilibration be used as a measure to trace the progressive movement of the economy?

Methodology: The study used a simple and straightforward method to analyze the recorded flow of funds accounts. It focused on the monetary economy consisting of five aggregated agents: Corporations, Households, Financial Institutions, Government, and Central Bank. The study measured the monetary inflow and outflow for each agent and used the rate of monetary flow disequilibration as a measure to trace the progressive movement of the economy.

Results: The study found that the rate of monetary flow disequilibration reverberates in the monetary economy in a ceaseless manner. This means that even though each economic agent constantly acts for eliminating the disequilibrium between the incoming and outgoing monetary flow, the disequilibrium does not disappear altogether from the monetary economy due to the local nature of each bilateral transaction.

Implications: The study suggests that the rate of monetary flow disequilibration can be used as a measure to trace the progressive movement of the economy. This could provide valuable insights into the dynamics of the monetary economy and help in understanding the role of the invisible hand in regulating the economy.

In conclusion, this research has shown that the rate of monetary flow disequilibration can be used as a measure to trace the progressive movement of the economy. This could provide valuable insights into the dynamics of the monetary economy and help in understanding the role of the invisible hand in regulating the economy.

Link to Article: https://arxiv.org/abs/0104014v1 Authors: arXiv ID: 0104014v1