New Delhi, Dec 3 (PTI) A new book seeks to find interconnected economic thoughts that stand out and make one question neoclassical and orthodox economics.

Mumbai-based fintech entrepreneur Swapnil Pawar says his book "Titled Rethinking Money and Capital: New Economics for QE, Stimulus, Negative Interest and Cryptocurrencies" is all about economic concepts that have added to the global financial crisis.

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"Money and capital are essential part of our lives. But they are just bidding tokens," he says.

"When you rethink of their nature, humanity is free from the shackles of fake economic constraints. When the reader analyses my book, he starts rethinking and discovers alternate endings. Rethinking Money and Capital gets many such deductions for a broader picture that will change the economic policies for the better," Pawar says.

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With recent global economic crisis and following government decisions regarding money and capital, he "examines the erroneous approach to mainstream macroeconomics in academia, media, and government, and its heavy reliance on oversimplified models of human economic organisation".

The analysis in this book, published by Leadstart, leads to many counterintuitive conclusions. For example, the fiscal deficit is the counterpart of the demand for net savings by individuals and not an evil to be battled.

Inflation is sometimes an indicator of more egalitarian distribution of incomes and not always a scourge that hurts the poor. There is a strong case for negative real interest rates on risk-free debt.

Pawar says the intent of the book is twofold - firstly, he has attempted to examine some of the major themes like fiscal deficits, inflation vs growth and monetary policy in recessions from first principles instead of using an existing theory.

This, he says, leads to several interesting conclusions.

Secondly, he says he has tried to arrive at some implementable solutions for our times, in the context of both developed economies and emerging economies.

According to Pawar, given the topic at hand, the book explores multiple connected themes.

"The defining characteristic of capitalism is protection, accumulation, and growth of wealth for individuals. It is not, efficient allocation of resources and maximization of production of goods and services, as is usually claimed," he writes.

"Money and financial wealth are contracts, not resources. They originate, move about, and disappear within their own self-contained circuit, dissociated from real economy. The total stock of money is endogenously determined by the economic actors and institutional constraints. The same goes for the total stock of financial capital," he says.

And then, "most of the conventionally accepted economic 'laws' (supply and demand, marginal utility, etc) do not apply to money and financial capital. Instead, we need to use stock-flow consistent accounting coupled with behavioral tendencies of economic actors to arrive at the drivers of the evolution of money and financial capital", he writes.

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