ABSTRACT
In this chapter changes in aggregate costs of production are estimated and compared with the general price level of output calculated in the last chapter. The definitions and notation of Mr. Keynes’ theory of money are here used. The above data enable us to obtain an estimate of Q, and hence (the total of investment being known from Chapter IX.) an estimate of the total of savings for each year. Comparison with statistics of production, quantity of money, interest rates, etc., should give fruitful results from the point of view of monetary theory.
The estimate of savings made by the Colwyn Committee is considerably too high owing to a mistake concerning the nature of new capital issues. The undistributed profits of companies and firms, the sinking funds of the State and Local Authorities, and the surplus of receipts over outgoings of insurance companies and building societies account for nearly the whole total of savings during recent years.
