The Global Economy as a Living System

This book through an interdisciplinary framework of economics and bio-physics, elucidates a natural-science paradigm of the economy, which treats the global economy as a living system shaped by biological and socio-economic evolution. It adds to the understanding of economic value by showing that it contains an objective useful-energy component and a subjective information component. The two-component nature of value explains the qualitative differences in the pricing of global energy carriers and intellectual products. The physical concept of value and money is confirmed by the existence of an annual macroeconomic cycle, which was evolutionarily formed under the dominant influence of grain production. It is argued that the creation of information is a fundamental property of all living systems. In relation to the global economy, the creation of information is expressed in its accelerated growth through the overall value (the world GDP). For the harmonious development of the world economy working with nature not against it, there must be a balanced distribution of GDP, which requires a transition from static to dynamic added value taxation.