"The recurrent banking panics of the 19th century and the Great Depression of the 1930s are widely viewed as failures of our economic system. A simple version of Samuelson's overlapping generations model is used to generate such failures of Walrasian equilibrium. The spontaneous "panics"...

This paper develops further a model of the economic process, first set out as part of a paper by the author published in 2007, concerning the application of thermodynamic laws to economics. The paper sets out relationships between economic output and capital, labour, resource and waste stocks,...