ABSTRACT
Banks issue money. However, they also have another function; they receive and bring to the financial market a part of the income issued. In its money-creation function, the banking system is in a monopolistic position. But, concerning financial intermediation, banks are competing with other institutions, like savings banks, insurance companies, investment banks and investment companies. The accumulation of simple capital-time – due to the saving of wages not transformed into profits – is a positive, negative or zero operation that is situated inside each period of production, between the boundaries defined by two successive emissions of wages. Net investment is a little more complicated accumulation of capital-time. This time, the reasoning has to be logically carried over two distinct periods: profit is formed from wages of one period, and it is spent in the emission of the wages of another period. If the production of capital-goods were a full emission, excess demand due to investment would be nil.
