Abstract
The person drawing up an economic policy cannot help obeying any economic theory. Anyone is a manservant of some kind of economic theory. However, he must also face to the reality. After a period of time, this is because policy effect is revealed by statistics numerical value. Which theory to choose in economics before the policy making became needless, if economics was converged by one latest theory, and he would take down half of his load. The work left behind by him will be how he hides the discrepancy between economic theory and real economic situation, in other words, what kind of excuse he makes. Actually, referring to a modern economic mathematic system, there are many economists thinking that the economics was unified. However, it is misunderstanding of people forgot economics is the member of the social science. It means that it takes reality away from economics to find universality like the natural science in economics. Modern mainstream economics is theories of the succession of neoclassical economics and, in ignoring reality, is a viewpoint to attach great importance to logical stringency. It is only a vulnerable castle on the unrealistic logic and is not the thing which can endure bombardment from reality. However, it is the present situation of the Japanese executive branch to draw up a policy based on the unrealistic logic. As example, I consider the reason why monetary policy of Bank of Japan (BOJ) under the Abe Administration cannot achieve an original aim at all in this article. I clarify a limit of the monetary policy by explaining that “reflationist theory” and the modern macroeconomics, on which BOJ have based a ground of the monetary policy, are not suitable for explaining real economy. At first, I survey the relationship between BOJ and reflationist, and the contents of changing monetary policy, then detail the logical background.
