THE COMPLETE EQUATION, SAVING EQUALS INVESTMENT

Authors

  • José Villacís Gonzalez

Keywords:

income, production, net availables, second-degree working capital, savings, investment, static, dynamic

Abstract

Before publication of Keynes’ General Theory of Employment, Interest and Money in 1936, Germán Bernácer had discovered both third-degree net availables and second-class working capital two decades earlier in 1916, neither of which has yet been incorporated in today’s economics. This work undertakes the task, which results in a significant change to the fundamental equation: savings equals investment. To facilitate analysis we separate the process into three phases: the first introduces new availables or net availables of the third degree. The second adds second-degree working capital and the new money required to fund it. In the third we reach the final equation, the result of the two previous phases.

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Published

2014-09-30

How to Cite

José Villacís Gonzalez. (2014). THE COMPLETE EQUATION, SAVING EQUALS INVESTMENT. International Journal of Research Science and Management, 1(4), 8–22. Retrieved from http://ijrsm.com/index.php/journal-ijrsm/article/view/685

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Articles