Estimations of the Cycle of Money Without Escape Savings

Abstract

The theory of the cycle of money without escaping savings is about the distribution of money and the ideal case that there are not any non-return savings. Then, mentioned the importance of the appropriate tax policy. Therefore, this work has determined that the tax policies are in connection with the savings of the companies of controlled and uncontrolled transactions. The appropriate tax policy should apply higher taxes to companies that substitute the economic activities of smaller companies. These companies destroy the structure and the functionality of the economy because the reuse and distribution of money declined. These companies are companies that sell more than one product or service substituting multiple smaller companies. The current analysis has applied the Q.E. method and its econometric approach.