Early Twentieth-Century Heterodox Monetary Thought and the Law of Entropy.

The purpose of this paper is to study the link between an important development in the physical sciences, the discovery of the law of entropy, and its impact on the evolution of heterodox monetary theory early this century. Based on the recognition that, unlike the physical world, the monetary system appears to escape the effects of entropy, writers such as Soddy and Gesell developed particular theories and policy views that took this asymmetry into consideration.