Motivated by the debate over raising minimum wage and over the energy policy decisions of Germany and Japan with limiting nuclear energy, I wrote a paper using the thermodynamic analogy to show how price impacts the macro economy. I did not expect that it would take me this long to write as it introduced an unexpected need for developing some concepts such as the ideal arbitrage cycle.
Along the way, I found a different mathematical justification of the Black-Schoels equation that does not make the efficient markets assumption, but instead clarifies the concept of an efficient market as one that maximizes the system’s entropy. Such a MAXENT approach, has significant implications and can even be generalized to non-equilibrium conditions.
Here is the link to the release, The Effect of Price in Macroeconomics.
I look forward to your feedback.