The aim of the present paper is to demonstrate that it is not methodological individualism but methodological collectivism that enables Kalecki (1933), before Keynes (1936), to establish “the fundamental prerequisites to macroeconomics,” which demonstrate that investments determine savings and that savings are equalized by investments in relation to income, and to escape from the concept of “utility” and instead to utilize that of “income.” Kalecki’s macroeconomic model assumes an imperfectly competitive-market economy which consists of the two classes, the capitalists and the workers, and proves their fundamental characters as “active economic agents” and “passive economic agents,” respectively. Based on the principle of effective demand, Kalecki (1933) shows that the capitalists’ decision on investment and consumption determines the workers’ income, or wages, while the capitalists earn what they spend. Kalecki (1939a), however, points out the possibilities for the workers to be “active economic agents” through the activities of trade unions and to influence an distribution factor, which are examined in detail in Kalecki (1939a), Kalecki (1943), and Kalecki (1971a). This is to say that it is these works of Kalecki that enable the activities of trade unions as a role of labour supply to be incorporated into the analysis in the principle of effective demand. Moreover, Kalecki, who utilizes methodological collectivism, may be regarded as a forerunner in behavioural economics.

In recent years, a school of economics called MMT (Modern Monetary Theory) has been attracting attention, but it has not been analyzed theoretically or mathematically. This study aims to provide a theoretical basis for the skeleton of the MMT argument, while maintaining the basics of the neoclassical microeconomic framework, such as utility maximization of consumers by means of utility functions and budget constraint, profit maximization of firms in monopolistic competition, and equilibrium of supply and demand of goods. Using a simple static model that includes economic growth due to technological progress, we will argue that: 1) a continuous budget deficit is necessary to maintain full employment when the economy is growing, and that this deficit does not have to be covered by future surpluses; 2) Inflation is caused when the actual budget deficit exceeds the level necessary and sufficient to maintain full employment. In order to avoid further inflation, it is necessary to maintain a certain level of budget deficit; 3) A shortfall in the budget deficit leads to recession and involuntary unemployment. To recover from this, a budget deficit that exceeds the level necessary to maintain full employment is required. However, since a continuous budget deficit is necessary after full employment is restored, the deficit created to overcome the recession does not need to be covered by future budget surpluses, nor should it be.

  There has been no example of the development of a low-temperature Stirling engine for heat-source temperature of 5℃ to 20℃ on the low-temperature side and of 95℃ on the high-temperature side, where temperatures differ by 75℃ to 90℃. In our previous paper^*1, we proceed with sensitivity analysis and optimization for all variables. As a result, the amount of calculation become enormous, while some of the variables are roughly dealt with. The accuracy of the assumed calculation process with assumed constants does not require high precision of estimation to be tested by experiment, remaining concerns over sensitivity analyses and optimization for some variables. In this estimation, in order to reduce manufacturing costs of the experimental machine, dimensions are reduced while maintaining the graduality to mass-produced machines.

  This report examines the conrod-stroke ratio, pressure ratio of a crank chamber to working gas, cylinder-PTFE overlap thickness, and phase difference, which have a large effect on friction loss and working-gas heat-capacity, aiming at eliminating the concern these sensitivity analyses. The examination resulted in the conrod-stroke ratio of 6.4 (3.84 in the previous design), the crank-chamber working-gas pressure-ratio of 1.0 (to be optimized by experiment in the previous design), and the cylinder- PTFE overlap-thickness of 0.02 mm and 0.10 mm on the high and low temperature side, respectively (both 0.05 mm in the previous design), and phase difference of 6.0°and 8.7°in the experimental and practical environment, respectively (2°to 3°in the previous design, whose sensitivity was to be confirmed and optimized in the experiment). With reduction of friction loss and work in one cycle, maximization of the revolution number and the working-gas heat-capacity makes output of 283W (237W in the previous design, in experimental environment), power-generation efficiency of 8.9% (8% in the previous design), and in the practical environment, output of 11.8% and 12.1% for power-generation efficiency of 3kW and 10kW, respectively, so that we achieve the target^*2 of 12%.