International Journal of
Business Diplomacy and Economy
ISSN: 2833-7468
Volume 2 | No 6 | June -2023
Published by inter-publishing.com | All rights reserved. © 2023
Journal Homepage: https://inter-publishing.com/index.php/IJBDE
Page 92
Utility of Cycle of Money with and without the Escaping
Savings
Constantinos Challoumis
National and Kapodistrian University of Athens, University in Zografou, Greece
Abstract: This paper is about the utility of the cycle of money with and without escaping
savings. This means that it is examined the critical points of tax policy and public policy which are
the best for the increase of consumption and of investments, subject to the case that there exist
escaping savings and the case that we have an absence of escaping savings. Therefore, there is an
analysis on the utility of the public sector and the utility of the uncontrolled enterprises. It is
plausible to extract conclusions about the utility of the cycle of money, showing the points and the
behaviors of any economy when there are and when there are no escaping savings. For this analysis
is used a simple system of first-order derivatives under conditions, and the Karush-Kuhn-Tucker
method.
Key words: utility of cycle of money, escaping savings.
1. Introduction
This paper seeks the utility of the cycle of money or money cycle with and without escaping savings.
The determination of the utility of the money cycle is plausible through the utility of companies and
the utility of the authorities (Bhuiyan & Farazmand, 2020; Biernaski & Silva, 2018; Kanthak &
Spies, 2018; Mackean et al., 2020; Mueller, 2020; OECD, 2020; Syukur, 2020; Ud Din et al., 2016;
Wu et al., 2019). Utility graphs were extracted, which were used to obtain the behavior of the money
cycle with and without escaping savings (Challoumis, 2019a, 2019d, 2021a, 2021d, 2021c, 2022a,
2023). In addition, it should be mentioned that the impact factor of financial liquidity was used, and
in the case of the impact factor of escaping savings, it was considered approximately equal to zero
and in the other case, it wasn't equal. These are the essential components of the money cycle. The
following section explains the basic principle of the money cycle without avoiding savings.
2. Literature Review
Contracts and agreements between participants in control transactions determine how profits and
losses are allocated. Contract modifications should be communicated via the agreements (Bougas,
2018; Cruz-Castro & Sanz-Menéndez, 2016; Díaz et al., 2020; Fronzaglia et al., 2019; Herrington,
2015; Miailhe, 2017; Nowicki, 2019; Shamah-Levy et al., 2019; Snow, 1988; Suslov & Basareva,
2020). This is why tax authorities should conduct periodic inspections. Contracts must be specified
regularly to be comparable (Challoumis, 2018a, 2019c, 2019b, 2021e, 2021g, 2021f, 2021b, 2022b).
The arm's length principle requires periodic inspections of companies that participate in controlled
transactions. The cost-sharing is then determined based on a periodic review of companies that have
been tested as parties. The scope of controlled transaction companies is to face issues related to the
taxation of their activities. The requirements for companies engaging in controlled transactions with
tax authorities should fall within the scope of the arm's length principle. (Adhikari et al., 2006;
Arabyan, 2016; Hussain et al., 2022; Schram, 2018; Smętkowski et al., 2020). The appropriate
agreement of the companies of controlled transactions is that which permits them the maximization
Electronic copy available at: https://ssrn.com/abstract=4490920