THE MONETARY SYSTEM AND ENTROPY
the discovery of the law of entropy had important ramifications
in monetary theory. The heterodox policy prescriptions of Silvio
Gesell and Frederick Soddy were largely based on recognition of
an asymmetry arising from the existence of a monetary system that
evades entropy and the irreversible effects of the passage of time.
According to Gesell, this asymmetry must be eliminated if the economic
system is to rid itself of the underlying cause of endemic crises.
The solution resides in systematically taxing liquid holdings.