Yoshinobu Hiromiya1, Eizo Kinoshita2

(1. Real Estate Rental Business Manager, Economic Critic, Hyogo, Japan;

2. School of Urban Science, Meijo University, Gifu, Japan)

 

 

Abstract: Based on the concept “Thetical Economy and Antithetical Economy in Macro-Economics”, which has been proposed by Kinoshita, we find we have two different, mutually contradicting economic phases to deal with. Viewed from the perspectives of OR (Operations Research), the two phases have their respective theorems. The theorem in “Thetical Economy” is Say’s Law (supply creates demand), and the theorem in “Antithetical Economy” is the principle of effective demand (demand creates supply). It is possible to assume that corporate behaviors can dramatically change between the two economic phases from time to time. In “Thetical economy”, private companies seek to maximize their profit and increase their investment expenditure, because the efficiency of investment is high during this phase. In “Antithetical Economy”, however, companies aim to minimize their debt and stay away from (or reduce) investment, because the efficiency of investment is low in this phase. In this paper, the authors attempt to propose a simple and explicit definition of Thetical economic phase and Antithetical economic phase, by analyzing combined data of simple macroeconomic statistics concerning behaviors of companies and a central bank, in order to establish a method which enables an automatic judgment as to whether government behavior is appropriate or not.

 

 

Key words: macro economics; thetical economy; antithetical economy; quantity equation of quantity theory

of money; economic growth

 

JEL code: E2