Monthly Archives: April 2001

The Mathematical Economics of Compound Rates of Interest: A Four-Thousand Year Overview Part II

April 24, 2001

2. Why Economies Develop Debt Crises: The Mathematics of Compound Interest The past century’s economic schoolbooks have described a universe running down from entropy. Production is assumed to be plagued by diminishing returns, so that each additional unit of input produces less and less output. Even if technology were recognized to raise the productivity...

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