The Theory of Cycle of Money - How Do Principles of the Authorities on Public Policy, Taxes, and Controlled Transactions Affect the Economy and Society? 1 The Theory of Cycle of Money - How Do Principles of the Authorities on Public Policy, Taxes, and Controlled Transactions Affect the Economy and Society? Constantinos Challoumis National and Kapodistrian University of Athens, Greece E-mail: challoumis_constantinos @yahoo.com http://dx.doi.org/10.47814/ijssrr.v6i8.1525 Abstract This paper shows the key elements of the regulations that authorities should follow and on the other hand the issues about the companies of controlled transactions with the elements about the maximization of their utility. Then, we determine that we have a contra behavior between the authorities and the enterprises which participate in controlled transactions. The authorities follow some international methods to avoid taxation or to minimize the impact of taxes on their profits. Thence, in this scrutiny, are presented some crucial principles about the relation of public and tax authorities with the companies which participate in controlled transactions. The principles of international controlled transactions are significant for the companies and the authorities. The sense of framing is crucial for the determination of a problem, especially from an approach to public policies. The case of framing is crucial for the determination of social quality. Then, an inquiry has been made using the terms of framing and feedback to determine the impact of tax policies on the quality of society. Keywords: Authorities; Controlled Transactions; The Cycle of Money; The Velocity of Financial Liquidity; Velocity of Escaped Savings; Enforced Savings; Tax and Public Policies; Controlled Transactions; The Cycle of Money Subject classification codes: H2, H26, E22, E23 Introduction The formation of adequate behavior of authorities and companies is critical to the economic system. This paper discusses the issues of the cycle of money, the tax policies with the public policies, which use the velocity of escaped savings, and the velocity of financial liquidity. This means that are scrutinized the structural economic elements which affect the dynamic of any economy and its robustness. Thereupon, are used the equilibriums of the cycle of money to extract the appropriate conclusions, which are needed about the adequate policies which must follow by the authorities. The same happens for the International Journal of Social Science Research and Review http://ijssrr.com editor@ijssrr.com Volume 6, Issue 8 August, 2023 Pages: 1-22 Electronic copy available at: https://ssrn.com/abstract=4540350