| Explanation of [Fractal Economic Theory]
[Fractal Economic Theory] is written by the addition of many contents to
[Wholly Revised Financial and Economic System].(Published on 2008/10).
Foremost achievement is theoretical analysis of the cause of bubble economy.
In general, analysis of the cause of bubble economy has been thought to
be impossible forever. But it was not true.
Bubble economy is caused by the lack of consideration in formula for calculation of present value of future cash flow.
Currency is fractal structure. (It was published in [Introduction of Minus
Interest])
As currency is fractal structure, value of currency overlaps by stream
of currency, and future cash flow is increased by the overlap.
So, it is necessary to eliminate the increase of overlap when we calculate
present value of future cash flow.
But it is not eliminated in present financial economy. As a result of lack
of elimination, present value of future cash flow is calculated excessively.
So, Securities are issued excessively. It is called as collapse of bubble
economy that excessive present value is decreased drastically, triggered
by depression of business.
I denominated economic theory by use of fractal structure of currency as
Fractal Economic Theory.
By use of Fractal Economic Theory, we can get various property of
financial
economy.
Most important property is “ If money is distributed equally, we can get
maximum pace of economic growth”. It is theoretically proved that economically
equal society gets maximum pace of economic growth.
Chapter 1,2,5 of this book has been published in [Wholly Revised
Financial and Economic System].
(It was revised partially)
Chapter 3,4 is added in [Fractal Economic Theory].
I hope financial economic problems will be solved and advanced economic
progress will be realized by this book.
August 2009
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