DeSoto Questions

Economics Economics Questions
1

Hi All,

I’m a non-economist working my way through DeSoto’s “Money, Bank Credit…etc”. I felt like I was doing OK with it until I started reading the discussion about chart V-1 (page 293 in the English edition). Are the choices of number of stages, percent splitsof Final Consumption, and “profit or interest at each stage” just chosen as an example of a typical multi-stage production process? I am similarly confused about chart V-2. Maybe if I understand #1, I’ll get #1.

I hope I haven’t asked a question that demands an impossibly long explanation. Sorry for being thick about this!

MarkB

2

Yes.

Not sure what lies behind your question.

3

OK - thanks, Dave.

What lies behind my question is confusion about how to understand the discussion. While part of my mind is trying to figure out what fundamental point I must have missed to understand the values in the example, it is difficult to just concentrate on, and understand, the discussion. KNowing that it is just an example of a possible scenario will allow me to concentrate on the discussion.

Thanks,

Mark