arXiv subjects

Laurence Francis Lacey

Publications and source records attributed to Laurence Francis Lacey.

3 recordsLinked to original sources

arXiv2022

Macroeconomic evaluation of the growth of the UK economy over the period 2000 to 2019

An information entropy statistical methodology was used to evaluate the growth of the UK economy over the period 2000 to 2019, with an emphasis on the impact of labour productivity on gross domestic product (GDP) per capita and the average growth in real wages, during this time period. The growth of the UK economy over the period 2000 to 2019 can be described in terms of three distinct phases: 1) 2000 to 2007 - strong sustained economic growth 2) 2008 to 2013 - the impact of the international financial crisis, its immediate aftermath, and period of recovery 3) 2014 to 2019 - weak sustained economic growth The key determinant of the UK economic performance over this period would appear to the annual rate of growth in labour productivity. It was closely related to the annual rate of growth in GDP per capita, and it was significantly weaker in the period 2014 to 2019 compared to the period 2000 to 2007. This also corresponded with a weaker rate of growth in annual average real wages over the period 2014 to 2019 compared to the period 2000 to 2007. Throughout the period 2000 to 2019, UK CPI was maintained, on average, at approximately 2.1% per annum. More rapid UK economic growth would be expected to be achieved by sustained investment in measures that enhance labour productivity, with the further expectation that a sustained improvement in labour productivity would increase the annual rate of growth of UK GDP per capita and average real wages. While the results given in this paper are specific to the UK over the time period 2000 to 2019, the expectation is that the methodology and approach adopted can be applied to quantifying the dynamics of any developed economy over any time period.

stat.AP↗

arXiv2021

On the nature of monetary and price inflation and hyperinflation

Monetary inflation is a sustained increase in the money supply than can result in price inflation, which is a rise in the general level of prices of goods and services. The objectives of this paper were to develop economic models to (1) predict the annual rate of growth in the US consumer price index (CPI), based on the annual growth in the US broad money supply (BMS), the annual growth in US real GDP, and the annual growth in US savings, over the time period 2001 to 2019; (2) investigate the means by which monetary and price inflation can develop into monetary and price hyperinflation. The hypothesis that the annual rate of growth in the US CPI is a function of the annual growth in the US BMS minus the annual growth in US real GDP minus the annual growth in US savings, over the time period investigated, has been shown to be the case. However, an exact relationship required the use of a non-zero residual term. A mathematical statistical formulation of a hyperinflationary process has been provided and used to quantify the period of hyperinflation in the Weimar Republic, from July 1922 until the end of November 1923.

q-fin.GN↗

arXiv2021

Characterization of the probability and information entropy of a process with an increasing sample space by different functional forms of expansion, with an application to hyperinflation

There is a random variable (X) with a determined outcome (i.e., X = x0), p(x0) = 1. Consider x0 to have a discrete uniform distribution over the integer interval [1, s], where the size of the sample space (s) = 1, in the initial state, such that p(x0) = 1. What is the probability of x0 and the associated information entropy (H), as s increases by means of different functional forms of expansion? Such a process has been characterised in the case of (1) a mono-exponential expansion of the sample space; (2) a power function expansion; (3) double exponential expansion. The double exponential expansion of the sample space with time (from a natural log relationship between t and n) describes a "hyperinflationary" process. Over the period from the middle of 1920 to the end of 1923, the purchasing power of the Weimar Republic paper Mark to purchase one gold Mark became close to zero (1 paper Mark = 10 to the power of -12 gold Mark). From the purchasing power of the paper Mark to purchase one gold Mark, the information entropy of this hyperinflationary process was determined.

econ.GN↗