The Cycle of Money (C.M.) Considers Financial Liquidity with Minimum Mixed Savings

Abstract

This paper discusses the velocities of escaped savings and financial liquidity, as well as the minimum mixed savings. This means that examined the behavior of the money cycle under normal conditions, due to the velocity of mixed savings at their lower level and the velocity of financial liquidity. As a result, the money cycle determines how the economy operates in this case. Thence, it is plausible to extract conclusions about the consumption and investments in each economy. For this analysis a Q.E. method approach is used.