A Basis for Calculating Money Generation : A Quantitative Approach for a Money Generation Theory

This is a basic introduction on the money (or cash) generation applying the second law of thermodynamics. As the result of any economic process we observe an increase of the entropy of the magnitude of the value added. Based on this relation it is possible to calculate the necessary money generation for a financially stable economy. A bank is in this respect a service company for all other economic systems. It follows that money generations without the aim to create a value added are extremely detrimental for the world economy, like for instance the usage of certain funds. It is also briefly pointed out that the entropy question, and therefore the value added, is closely connected with the consumption of primary energy as well as with the climate development of the earth