National economy, national compatibility, capitalism, companie, household, public authorities, financial institution, Trente glorieuses, GDP gross domestic product, distribution of income, labour cost, taxes, consumption, investment, John Meynard Keynes, Friedman, foreign trade, FDI foreign direct investment, money supply, money creation, monetary policy, central bank, financing, financial marketization
It is within the multiple and different enterprises, which together define to a large extent a national economy, that the observation of economic and social facts is the most extensive and undoubtedly the most visible. The company is a reality that weaves its way through our daily lives because it is a place where the products we consume are produced, where investments are made, income is distributed, goods and services are exported that determine the commercial balance, and new jobs are created. As the place where profits are made, it is the essential element of capitalism. It has an impact on the environment and models the society of tomorrow. According to A. Dauzat, the term company appeared in France as early as the 12th century and, already, to undertake had the meaning of "to decide to do a thing and to commit oneself to its execution". Note that the Americans speak of company and the English of firm. We know that from the revolution of the 16th century to the technological revolution of the 18th and 19th centuries, numerous capitalist companies flourished and extended their power in the most diverse branches. It is therefore not surprising that the term enterprise has been attributed only to the capitalist enterprise.
[...] The most classic monetization operation is commercial discounting. Banks are not the only ones to be at the origin of money creation. When the government requests advances from the Central Bank, the latter creates money in exchange for the acquisition of a claim on the Treasury. The Treasury is also at the origin of the creation of scriptural money when it credits the account of certain economic agents without reducing the account of other agents and without taking funds for this in the form of taxes or bond issues. [...]
[...] Its growth is still considered as a measure of the economic health of a country. Whether by its evolution or by its per capita ratio, GDP is only a global measure, an average. It does not allow for an understanding of social inequalities or their evolution. It is quite possible to have an average GDP that increases while the income it is supposed to measure decreases for a majority of the population and increases sharply for a minority. GDP adds up everything that can be valued in monetary terms, namely the gross value of goods and services produced on national soil in a quarter, as well as the cost of government services. [...]
[...] This model is part of a scheme in which money is endogenous, i.e. It is the economic agents themselves who determine the quantity of money in circulation, and not the central bank as the multiplier model implicitly assumes. The credit multiply The extent of money creation cannot, however, be determined solely by the behaviour of a bank, because chain reactions occur, since every loan results in an additional deposit. If we assume that money creation is conditional on the existence of bank reserves, this additional deposit will then constitute the support for new credits in successive waves: But the new money creation will be of lesser magnitude than the previous one, since it is necessary to keep part of the additional deposit in the form of central money. [...]
[...] In the market economy, distribution takes place at two levels. Primary income, received as a direct or indirect counterpart to the participation of agents in productive activity, is separated from secondary income, received without a direct and immediate counterpart to productive activity, which is derived from redistribution mechanisms. The sharing of value added and the primary distribution of income If income is what a natural or legal person receives from his or her activity or property during a given period, the distribution of income is defined as all the operations involved in the distribution of value added among the various assets and liabilities of a national economy. [...]
[...] Thus, for monetarists, the fight against inflation is the primary objective of monetary policy and the best way to combat it is to act on money creation. The Keynesian position For Keynesians, monetary policy must vary the level of economic activity through the interest rate. The final objective will be to stimulate economic activity if it is depressed, or to tighten it if growth is accompanied by inflationary pressures. The intermediate objective is the interest rate, because its variations are likely to modify the investment strategy and therefore the level of employment. [...]
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