ABSTRACT

From the day monetary flows will run into the bank departments, inflation and unemployment will be abolished. Nevertheless, inflation and unemployment will be without delay cut from their source and will start at once their erosion in continuous time. Inflationary profit is formed in its very expenditure and therefore completely evades the rules of the financial market. All the financial flows related to the new increases in fixed capital will be transported by the financial market. The economy would experience a constantly nil unemployment if it were not for the dysfunction of capital. Interest is not additive to capital; it is, on the contrary, the compensation obtained by the lender who definitively loses the income fixed into capital. The definition of capital is not affected because the income from which it results is an equivalent future income: that the date of the reproduction of the income should be indefinitely postponed does not change anything to the nature of capital.