Static value and dynamic value | Fractal Economic Theory

In this book, economic value (of assets) is divided into two categories, static value and dynamic value. The purpose of this division is to understand essence of finance and economy accurately.

Static value ----- If the asset itself has utility value, the asset is named
　　　　　　　　　　　　static value. Commodities, buildings etc. correspond to
　　　　　　　　　　　　　static value.
Dynamic value ---- If the asset itself doesn’t have utility value and the
　　　　　　　　　　　　　source of value are out of the asset, the asset is named
　　　　　　　　　　　　 dynamic value. Currency corresponds to Dynamic value.

Economic transaction is to change static value for dynamic value.
Economic values of both static value and dynamic value occur at the same time.
It is meaningless to recognize the economic value of static value out of economic transaction. . The economic value of dynamic value that has no transactional static value is not recognized.
As described above, economic values of both static value and dynamic value always occur at the same time.
It is basic principle of economy that static value and dynamic value correspond one-to-one.
Economic value of static value is transactional dynamic value. Economic value of dynamic value is transactional static value. Economic value is the value accepted by economic transaction. So, economic value of static (dynamic) value is transactional dynamic (static) value.

Static value and dynamic value are defined as equivalent value in present financial economy, but dynamic value is different from static value in essence, in the sense that the source of dynamic value is in static value of others.

Equity is value like mixture of static value and dynamic value. Because company itself has value (static value), and equity is given fluidity (Exchangeable for money ? equivalent value to money ? dynamic value) in addition.

Equity is described in this book, but all equity in this book is intended to publicly-held stock. Privately-owned stock is not intended to this book.

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　　　Fractal Economic Theory (PDF)

Contents

　　　Explanation of [Fractal Economic Theory].

　Chapter 1 Problems and solutions of financial/economic system

　　　Static value and dynamic value.

　　　Indefinite possession does not make sense.

　　　Present money system is possession of future value in advance.

　　　Economic value of company is possessed as money of others.

　　　Equity is double possession of value of money. (Detail description)