The Cycle of Money - Escape Savings and the Minimum Financial Liquidity

Constantinos Challoumis

Abstract


This paper is about the velocities of the minimum escaped savings and of the financial liquidity. This means that has analyzed the behavior of the cycle of money in normal circumstances subject to the velocity of escaped savings and the velocity of minimum financial liquidity. The escaped savings are the savings that harm an economy, as they are related to savings that are saved abroad and not to the economy where produced. Then, it is determined how the economy works based on its cycle of money. Thence, it is plausible to extract conclusions about the consumption and the investments in each economy.  For this analysis, it has used a Q.E. method approach.

Keywords


Cycle of Money; Escaped Savings; Minimum Financial Liquidity

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References


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