Elements of the Theory of Cycle of Money without Enforcement Savings

Abstract

The theory of the CM (Cycle of Money) without escaping savings is about the distribution of money and the case that there are not any enforcement savings. Then, mentioned the importance of the appropriate tax policy. Thereupon, are determined the tax policies in connection with the savings of the companies of controlled and uncontrolled transactions. The purpose of this paper is to show the negative impact on the economy of having few enforcement savings. Booster savings are those that have a positive effect on an economy as opposed to escape savings. For the purposes of this analysis is used the Q.E. (Quantification of Everything) method and its econometric approach. Also, it uses the E.Q.E. (Econometric Quantification of Everything) method. The results confirm the initial hypothesis that booster savings show the amount of money available in an economy, as they allow money to be reused and better dispersed, resulting in greater consumption and investment. If money is concentrated in companies that substitute smaller domestic companies, then their super profits are impossible to consume and are usually stored in tax havens and international banks, with the result that this amount of money is lost from the economy.