The direction of money flow largely depends on how the negative aspect works.



The direction of money flow largely depends on how the negative aspect works. The negative aspect is deeply involved in fund raising and collection. Unless we analyze how the negative aspect functions, we cannot clarify the direction and power of money flow. If we literally regard the minus aspect as a passive or negative function, it is impossible to make use of the function or power of money in a positive or active manner.
The factors that restrict the functions of debt are a cycle, e.g., a long-term or short-term cycle, and mobility.

The causes of abnormal economic phenomena are excessive production and commodity shortage as a physical factor. Factors that may be viewed as related to monetary issues are an excess of supply and shortage of money, and factors seen from the aspect of human actions are excessive consumption and reluctant buying.
When the movement of people, products and money is biased and one-sided, the economy will lose its inhibiting factors. To prevent such bias, the market needs a system and restrictions.

Restrictions are very delicate considerations. What effects can we expect from them? What and how will we restrict, and in what phase? Depending on such conditions, the effects of restrictions will differ rather delicately. For example, when the financial regulations were put into practice to eliminate economic bubbles, the regulations did not cover non-bank institutions and agricultural association banks. Therefore, the regulations suffered a major setback later.

To make restrictions effective it is necessary for us to be well-versed in the market mechanism. Restrictions will not work effectively unless the market mechanism is used cleverly. If we go against the market mechanism, we might not see the results we initially expected, or even worse, we might see adverse effects.

We tend to turn our eyes towards superficial phenomena, but actually market trading is not as complicated as it looks. It is rather simple, i.e., it consists of selling and buying in principle. The direction of money flow depends on this question: which is stronger, selling pressure or buying pressure. The overall level moves up and down depending on the direction of money flow.

Assuming that the market mechanism is like this, restrictions that directly intervene in transactions have a high risk and do not offer us much to expect.

For example, when we want to restrict irregular transactions, we should change the factors that cause and the system that invites irregular transactions. When we act directly on transactions or try to restrict them, we do not always bring about the intended effect. Even though a transaction may be irregular, there is a good reason for it. Also, it is even more difficult to anticipate that certain side-effects and certain influences might occur under certain circumstances.

If an abnormal transaction is caused by money flow, one way to change or disperse the direction of the money flow is by shutting off the source of funds or somehow burdening the money flow. Another way is to provide an obstacle. Changing the standard is also an effective means. Yet another approach is increasing the width of the money flow pipe. And one other way is to provide the scope, limits or restrictions to the terms and conditions for transactions. Restrictions should be structurally provided to the system. They should not be used as a tool for forcibly suppressing the money flow.
Confusion in our contemporary economy is caused by a disregard for the functions of the negative aspect and restrictions.





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