The key lies in lending and borrowing and in taxes.

A monetary system is one that is a mechanism for circulating the flow of money.
In what way is money flowed and circulated? In particular, the problem is the way in which money is circulated.
The key lies in lending and borrowing and in taxes.

The driving forces behind the flow of money are differences. Differences are involved according to prices. Prices are formed on the basis of added value.
In reality, selling and buying are what moves goods. Selling and buying work in a certain direction, that is, they work to flow goods from producers to consumers. However, money is not circulated though the workings of selling and buying alone. The mechanism for recirculating money involves expenses as well as lending and borrowing. Expenses, in the form of income, are what recirculates money from producers to consumers.

Another factor is that, through lending and borrowing, funds are transferred from entities that have surplus funds to those entities that are in need of funds. For this transfer, since there is no motivation just to move the money, the presumption is that it will be repaid with interest. And this interest also partially takes the form of added value. In addition, since this still inadequately adjusts the monetary surplus and deficit, adjustments are made by redistribution of income through taxes.
The workings of money, the in-flow and out-flow, are demonstrated by the balance of income and expenditure.

The total amount of money must be finite. If there are no restrictions on the total amount of money, this is because the value of money has not been determined. If the total amount of money were constant, the overall monetary surplus and deficit would have a zero-sum relationship.
Therefore, the cash flow of income and expenditure as well as lending and borrowing have zero-sum relationships overall, and the amounts of the cash flow of income and expenditure as well as of lending and borrowing should be the same.

Expenses put a load on the flow of money. This load is something similar to friction. And friction depletes the driving force. Just saying that eliminating friction should take care of the situation is a rough approach. That is because friction works in a variety of ways. Although friction should be reduced in places where there should not be any friction, once the friction is gone, the mechanism itself may no longer be viable.

While the profits derived using indicators to measure cost-effectiveness are profits, they will vary depending on the profit-generating structure and circumstances.

By what measure and to what degree money flows, and whether money will be reclaimed is at the root of economic policy.

At the root of it all is distribution. And ratios are basically important because distribution exists. Therefore, for profits, it is necessary to focus on the profit margins. The most critical thing of all is to be able to forecast how the total rate of return on assets and the sales profit margins will change due to changes in the external environment and to make policies for each industry.


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