The finance-investment and saving-funding circuit in the closed and open economies with government
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Journal Title
International Review of Applied Economics
ISSN
0269-2171
Publisher
Taylor & Francis
Language
English
Type
Article
This Version
AM
Metadata
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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
Abstract
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.
Keywords
Finance-Investment and Savings-Funding, open economy, government
Sponsorship
This work was supported by CNPQ (the Brazilian federal reserach funding agency) and FAPEMIG (a state research funding agency in Minas Gerais).
Identifiers
External DOI: https://doi.org/10.1080/02692171.2017.1324411
This record's URL: https://www.repository.cam.ac.uk/handle/1810/264794
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