Estimations of the Cycle of Money Without Escape Savings

Estimations of the Cycle of Money Without Escape Savings

March, 2024 | Constantinos Challoumis
The paper by Constantinos Challoumis explores the theory of the cycle of money without escaping savings, emphasizing the importance of appropriate tax policies in maintaining economic health. The author argues that in an ideal economic scenario, there are no non-return savings, which maximize market consumption and investments. The paper highlights the complementary relationship between escaping savings and enforcement savings, where escaping savings are those that do not return to the economy, while enforcement savings are those that do. The analysis uses the Q.E. method and econometric approaches to determine that higher taxes should be applied to companies that substitute the activities of smaller companies, as these companies can disrupt the economy's structure and functionality by reducing the reuse and distribution of money. The results show that a tax policy that maximizes utility for the economy, with lower taxes for uncontrolled transactions and higher taxes for controlled transactions, leads to a positive and increasing cycle of money. The paper concludes that appropriate tax and public policies, combined with consumption, investments, and savings, robust the economy, and that maximizing the cycle of money without escaping savings is crucial for economic stability and growth.The paper by Constantinos Challoumis explores the theory of the cycle of money without escaping savings, emphasizing the importance of appropriate tax policies in maintaining economic health. The author argues that in an ideal economic scenario, there are no non-return savings, which maximize market consumption and investments. The paper highlights the complementary relationship between escaping savings and enforcement savings, where escaping savings are those that do not return to the economy, while enforcement savings are those that do. The analysis uses the Q.E. method and econometric approaches to determine that higher taxes should be applied to companies that substitute the activities of smaller companies, as these companies can disrupt the economy's structure and functionality by reducing the reuse and distribution of money. The results show that a tax policy that maximizes utility for the economy, with lower taxes for uncontrolled transactions and higher taxes for controlled transactions, leads to a positive and increasing cycle of money. The paper concludes that appropriate tax and public policies, combined with consumption, investments, and savings, robust the economy, and that maximizing the cycle of money without escaping savings is crucial for economic stability and growth.
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