Cycle of Money with the Velocities of the Escaped Savings and of the Minimum Financial Liquidity

Abstract

This paper is about the velocities of the minimum escaped savings and of the financial liquidity. This means that we analyze the behavior of cycle of money in normal circumstances subject to the velocity of escaped savings and the velocity of minimum financial liquidity. Therefore we determine how the economy works based on its cycle of money. Thence, it is plausible to extract conclusions about the consumptions and the investments in each economy. For the purposes of this analysis is used a Q.E. method approach.