Abstract
Abstract:
Although the relationship between liberalism and his political thought has been emphasized,
the classical aspect of his economic theories has been underestimated. This has, in my view,
several reasons: To be sure, Ishibashi was one of those who had introduced Keynesian economics
and his idea of positive fiscal policy. At the same tine, Ishibashi also admitted the
rigidity of the market system. But this aspect of his economics did not prevent him to be
committed to the classical economic theories, based on free market. It is characteristic of
Ishibashi that these aspects existed together in theory and in practice. Based on this understanding,
this paper attempts to reveal his optimism about price adjustment. This, in my
understanding, led to his basic optimism about inflation. Thus, the study contributes to the
better understanding of Ishibashi’s economic thought in particular and also to the better
understanding of the many-layered disputes in his age in general.
JEL classification number: B31.
