Velocity of the Escaped Savings and Financial Liquidity (With and Without Minimum Mixed Savings)

Abstract

This paper is about the velocities of the escaped savings and of the financial liquidity, using the minimum mixed savings. This means that it has analyzed 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 the minimum mixed savings. Therefore, it has determined how the economy works based on its cycle of money. Thence, it is plausible to conclude about the consumption and the investments in each economy. For this analysis, the Q.E. method approach has been applied.