For the essence of macroeconomics, see the following article:
The Great Depression occurs when the economic cycle is cut off.
The economy is established by the economic cycle. Macroeconomics deals with an economy with an economic cycle.
Therefore, macroeconomics cannot handle the Great Depression.
An economy whose economic cycle has been interrupted collapses into a deflationary spiral.
This is the Great Depression. I hear that way. ... However, at very low interest rates, it may not become a deflationary spiral.
A large number of unemployed people appear. Unemployed people cannot consume because they cannot earn income. As a result, many companies cannot sell their products, and corporate performance deteriorates. Many companies with poor performance dismiss workers. Furthermore, the company goes bankrupt.
As a result, more unemployed people appear. Increasingly, consumption is getting worse, and business performance is getting worse in many companies. Further dismissal of workers and corporate bankruptcy are caused.
I think this vicious cycle is a great depression.
“Deterioration of the economy and falling prices are circulating.” I have heard that this is a deflationary spiral.
A stock market crash begins in the stock market. The bank will then go mad and collect the funds that it lends and return them to the central bank. Before the bank loan becomes uncollectible.
As a result, the amount of currency circulating in society is drastically reduced. This causes a fall in prices.
At this time, society is in a vicious cycle of the emergence of a large number of unemployed people and the deterioration of the economy. Due to the economic downturn, banks increasingly collect loans. Prices will fall further.
I think this is a deflationary spiral.
However, as of 2019, ultra-low interest rates have continued for a long time worldwide. At this very low interest rate, the bank will not need to recover the money it has mortally lent.
The 2019 Great Depression does not fall into a deflationary spiral. Everyone is unaware of deflation. The Great Depression of the world economy may have already begun.
It will be an extreme expansion of the economic inequality.
World finance will probably incorporate a dynamism that allocates the majority of the world's wealth to a few wealthy people.
The vast majority of people are unable to receive an appropriate distribution of wealth, have insufficient income and cannot purchase goods.
Even if the person's nominal wage remains the same, the property price will soar and the person will not be satisfied with the purchase of the product because of the high rent.
It is a story in the news of November 2019. A story about a middle-class person who graduated from college in the United States. The person works for a company and is paid. However, only managers are profitable. There are an increasing number of employees who are paid but cannot pay rent.
While the economy is growing rapidly, the poor are expanding into the middle class of society.
Real wages are falling if nominal wages remain the same even though the amount of currency circulating in society at an extremely low interest rate has increased.
If the amount of currency distributed to society increases, real estate prices will rise. If people are unable to purchase goods to pay soaring rents, the performance of many companies will deteriorate.
If a company can't tolerate the worsening of its business performance, it will result in the dismissal of workers, bankruptcy, and the emergence of a large number of unemployed people.
As many unemployed people begin to emerge, governments will further cut interest rates to prevent deflation.
As a result, the amount of money supplied to society will increase, rents will rise further, and people's consumption will become increasingly cold, leading to dismissal of workers and bankruptcies.
In addition, a large number of unemployed people appear.
If a large number of unemployed people appear, the economic cycle is cut off. The Great Depression begins.
The emergence of a large number of unemployed people, further reductions in interest rates, rising rents, and deterioration in corporate performance. This vicious cycle may be the Great Depression of 2019.
However, prices do not change.
See the next article.
Letter to White House at Google Blogger My Linkedin Hatena Blog Japanese Blog TOP 叙事詩(になればいいな) KeitaYamada’s diary English Blog TOP Odyssey(wow!) Blog of keitayamada This Google Blogger blog "Letter to White House "is writing Japanese articles with an effort to make it suitable for google translation. This makes it difficult to read Japanese sentences. This "Mail to White House" is translated by Google translate from "Letter to White House". So My English in "Mail to White House" may be unnatural. For that reason, I decided to write a Japanese article on the Hatena Blog that does not care about Google translation. I wrote an Japanese article on the Hatena Blog that summarizes more than 20 Google Blogger blog articles. And I made an English article same as Japanese article on the Hatena Blog. I link to Those English article at below. I'll link it. If it is easy to read, please read it. I hope that G
No.311 Gov bond with zero interest. Allow only central bank to buy. Gov execute new projects using this funds. This bond redeemed only when inflation rate exceeds upper limit. Solve problem. Please judge.
Expansion of industry and economy. State will execute projects that private industries do not. Economy expands by that size. Circulate currency to society according to the scale of economy. Inappropriate to use taxes for this national project. Private industry shrink as much scale as the project. With right funding, NASA projects, for example, will revolutionize everything in the world. Government envisions the project. Central bank will issue new currency to supply necessary amount to the project. Gov issues zero-interest gov bonds in the amount necessary for project, and let central bank buy them. Let me explain. Industrial production is value-added production. Value-added is creation of monetary value from zero. Currency must be provided to there. Purchasing decide value-added of product.So, Executing natinal project always produce value-added. If product is not used, it's consumption. Pyramid construction is huge consumption. Supported ancient Egyptian economy. Let'
No.308 Potential in India. ・・・“God prepared India for the crisis of the world.” Some Christians may think so.
India's potential・・・My guess, from speculation. Japanese people who visit India suffer a culture shock from the caste system. They choose to be Indian friends. Hindu laws govern everything. When the upper caste and the lower caste come into contact with each other, an undesired "Cause" is created in the upper caste. "Cause" causes "Result". "Result" is the result of the dynamism of reincarnation. At this time, an undesired cause is not born to the person in the lower caste. In Indian society, the upper caste does not touch, for example, tableware that the lower caste touches. This causes culture shock to visitors from Japan. I think it is inappropriate to describe it as discrimination. It is a requirement by Hindu law. The highest level of the caste system is Brahmin, and below the four-step caste, there is a caste that is an outcast such as Dalit. The people of Dalit are all free. All are permitted under Hindu laws. I think the Brahmin peo