The Scope of this Study

Abstract

Before outlining the central issues underlying our investigation, let us clarify the concept of “capital” and “capital movements.” Economists distinguish two basic concepts of capital: capital goods, and purchasing power or title to wealth. In the first sense, capital is conceived of as tangible “producers’ goods.”¹ Capital in the sense of monetary funds or purchasing power does not restrict itself to specific commodities, but implies the possibility of control over productive means in general. Schumpeter, bearing in mind the function of capital, succinctly defined it as “... that sum of means of payment which is available at any moment for transference to entrepreneurs.”² But, regardless of the definition of capital, there needs to be abstention from consumption by someone in order to create capital disposal which is then transferred between the residents of the same country, or between the residents of different countries.³