Velocity of the Escaped Savings and Financial Liquidity on Mixed Savings

Abstract

This paper is about the velocities of the escaped savings and of the financial liquidity, using and the mixed savings. This means that it scrutinizes the behavior of the cycle of money in normal circumstances subject to the velocity of escaped savings and the velocity of financial liquidity in combination with mixed savings. Therefore, 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, the Q.E. method approach has been applied.