Analysis of the velocities of escaped savings with that of financial liquidity

Abstract

This paper analyzes the impact factors of financial liquidity and of escaped savings of the economy. These two elements are important for the economy as determine its robustness. It has been compared for the purposes of this paper, the velocity of escaped savings with the velocity of the financial liquidity to be able to extract the appropriate conclusions, about their behavior to the economy, through the use of cycle of money. Then, we obtained about these velocities their impact on the economy. The form of the escaped saving with the financial liquidity determines the dynamic of the economy. In this scrutiny has been examined the case that the financial liquidity is higher than the case of the escaped savings. According to those conditions has concluded the behavior of the economy to this economic circumstances. In addition, the method which used is the Q.E. methodology.

Keywords

• velocity of escaped savings
• velocity of financial liquidity
• tax and public policies
• controlled transactions
• MNEs