Prosperity and Depression.pdf

AnalYtical Table of ContentsXXI-Supply of saving (296)--8upply from in6ationary sources (297l-Theshape of the supply curve (298)-Movements along, and movements of,the curves (300)-Subdivisions of the capital market (30o)-Cumulativeexpansion process (30I)-Repercussions on supply of funds (30I)-Timesequence (302)-Volatilityof demand for funds (302)-Forms of monetaryexpansion (303).t s Why does thfJ Production of Producers' Goods and Du,able Gootls ,ise fasttwthan the Production of Perishable Consumers' Goods} The essence of theU acceleration principle" (304)-Repercussions on demand for finishedgoods (30s)-Role of expectations (306}-Ratio of capital to labour (306)­Importance of rate of interest (307)-Contribution of the accelerationprinciple (308)-Application to durable consumers' goods (308)-Inelasticsupply (30g)-Methods of financing (309).§ 6. Saving and th" Expansion Process: Importance of savings (3II)-IncomeDot at once disposable (3II)-Expansion with zero saving (JI2)-Incomevelocity of money (313)-Immediate effect of saving (314)-5aving andhoarding {3Is)-Consequences of continued saving (316)-Quali6.cations(]I7)-Institutional complications (3I8)-Saving during the early expansion(3 I g)-Saving dUring the later expansion (32I)-Saving at the peak(322).B. TBB CONDACDON PROCB18§ 7. General Description of the Mechanism: Role of deflation (323h-Spreadof deflation (324)-Intensifying factors (325).t 8. Moneta", A nalysi$ oftl" Contraction Process: Fall in total demand (326)-Cumulative fall in Investment (327)-Drying-up of supply of funds (327)-Forms of deflationary pressure (329)-Outright deflation by the centralbank (329)-Hoarding of gold and bank notes by private individuals (330)-Contraction of credit by the commercial banks (33I)-Hoarding by industrialand commercial firms (333)-Liquidation of non-bank debts (334)­Forced sales of assets to repay debts (33s)-Sales of securities, etc.. tocover losses (336)-Sales of securities, etc., for fear of a fall in their price(338)-Scales of liquidity (339).§ 9. Why does the Production of Producers' Goods and Durable Goods fall fasts,than the P,oduction of Consumers' Goods and Pmshable Goods } The operationof the acceleration principle in the contraction (34o)-The possibilityof postponing the acquisition of durable goods (34I}-The rale of expectations(342).CHAPTER I I.-THE TURNING-POINTS. CRISIS AND REVIVALI 1. Introduction : The problem (345)-" Accidental" and "organic"restraining forces (346).