Abstract: A thermodynamic system that can approximate the Ericsson or Brayton cycles and operated in reverse or forward modes to implement a cooler or engine, respectively. The thermodynamic system includes a device for compressing a first fluid stream containing a first gas-liquid mixture having a sufficient liquid content so that compression of the gas within the first gas-liquid mixture by the compressing device is nearly isothermal, and a device for expanding a second fluid stream containing a second gas-liquid mixture having a sufficient liquid content so that expansion of the gas within the second gas-liquid mixture by the expanding device is nearly isothermal. A heat sink is in thermal communication with at least the liquid of the first gas-liquid mixture for transferring heat therefrom, and a heat source is in thermal communication with at least the liquid of the second gas-liquid mixture for transferring heat thereto.