The finance-investment and saving-funding circuit in the closed and open economies with government
International Review of Applied Economics
Taylor & Francis
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Arestis, P., Resende, M., Alencar, D., Barbosa, L., & Diniz, G. (2017). The finance-investment and saving-funding circuit in the closed and open economies with government. International Review of Applied Economics https://doi.org/10.1080/02692171.2017.1324411
This contribution discusses the Finance-Investment and Saving-Funding (FISF) circuit regarding the closed and open economies with government. Moreover, we discuss the fiscal policy effects on aggregate demand and income in the FISF circuit context. Keynes explained the FISF circuit assuming a closed economy without government. The novelty of the current contribution is to analyze the above-mentioned circuit in the closed and open economy context including government. We show that the basic features of the FISF circuit remain unchanged for the closed and open economies when government is considered in the circuit.
Finance-Investment and Savings-Funding, open economy, government
This work was supported by CNPQ (the Brazilian federal reserach funding agency) and FAPEMIG (a state research funding agency in Minas Gerais).
External DOI: https://doi.org/10.1080/02692171.2017.1324411
This record's URL: https://www.repository.cam.ac.uk/handle/1810/264794