Arithmetic Of Keynes’S Expectation Theory
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    • editricon Arithmetic of Keynes’s Expectation Theory

    Kanti Mohan Pandit

    Research & writing

    Arithmetic of Keynes’s Expectation Theory

    Based on ‘Solar Functional Energy’

    By Kanti Mohan Pandit

    ‘Expectation’ has central role to play in economics and business. People in the economic world expect something profitable to happen and they gear their actions towards the target they make and wish it to make happen. The economists or the economic agents also expect to achieve some specific targets in the economy and formulate their policies towards the expected targets to be achieved in the future. Every economic model prepared by these experts for actions by economic agents aim to fulfill the well defined expectation at the beginning when the model is introduced.

    Economic environment is often uncertain. People, housewives, businessmen, and economic agents all have to face this uncertain situation and maneuver in order to manage their money, investment, and economy well. People try to acquire expertise through their past actions and experience to err less and less to get better return on their money saved or invested, Similarly business managers, economic agents in the government and all others concerned also maneuver their plans, actions, budgets and activities to achieve the targeted objectives. This may involve adjustments of expectations according to the observations registered in the past about errors and successes. Efforts are made to make better and reliable forecasts about market conditions, economic variables such as inflation, interest rates, foreign exchange rates, taxes, subsidies and so on to fit in to make the economic efforts successful. Business houses will need to know the prospects of investments in segments certain to yield better ROI and stand better in the competition. They formulate and frame their policies and actions in uncertain conditions that must not lead to failure of their valued investments. Even the best of organizations with the best of expertise in command fail to survive because of the onslaught of happenings and abrupt turnings in uncertain situations. The current depression in United States of America, UK, Japan and many other countries are live examples. Many giant organizations failed to achieve their expectations of return on their investment and got doomed. Their expertise and their sophisticated analytical tools to know the future trends that could have fulfilled their expectations failed to act and yield wanted results.

    What is the way out towards curtailing uncertainties and promoting more certainties? I am giving out a simple picture of a model that I developed through years of research useful for every economic agents, business managers, investments managers and common men and women.

    The model is Kantian Energy Cycle of Business based on ‘Solar Functional Energy’. This energy establishes a functional relationship with earth and its resources through human brains and gets a task of material development accomplished. Let us assume ‘C’ as Solar Functional Energy’ then ‘C’ is a function of three energy capsule of T-A-R. Solar Functional Energy is present among us in the form of electricity. ‘T’ is the negative charge (called Electrons) and ‘A’ (called Protons) is the positive charge of ‘C’. They jointly generate positive and productive currents to run the economic and business world as sunrays run the life, vegetation and plants. ‘T’ and ‘A’ remain continuously active but alone they are not productive for long run. ‘T’ alone activates sun rays with negative charges, which is useful for activating an economic zone where it has focus but without ‘A’ it can’t yield productive results. ‘A’ alone can activate an economy productive for short period only. Both together activate an economic zone for long from a year to 14 years or more. These factors of solar electricity act trough human brain that becomes active for a target to complete, positive or negative according to the other power factors present. These solar electric power factors are constrained by dark energy present in the environment called ‘R’. This factor is also present always but remains dormant until in an aggressive zone or in contact with the solar electric factors ‘T’ and ‘A’.

    I will present the graphic presentation of T-A-R network in my next article on ‘Arithmetic of Keynes Expectation’. Please look out for.
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