Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

358 Money, Bank Credit, and Economic CyclesTABLE V-5THE SUPPLY OF AND DEMAND FOR PRESENT GOODS (WITH CREDIT EXPANSION)Suppliers of Present Goods Demanders of Present Goods(270 m.u. come from savers and 113.75 m.u. (Suppliers of future goods)have been created ex nihilo via bank credit)Capitalists 1st stage = 85.75 + 10.25 = 96.00 Z 85.75 to Capitalists 2nd stage + 10.25 to original meansCapitalists 2nd stage = 71.50 + 10.85 = 82.35 Z 71.50 to Capitalists 3rd stage + 10.85 to original meansCapitalists 3rd stage = 57.00 + 11.64 = 68.64 Z 57.00 to Capitalists 4th stage + 11.64 to original meansCapitalists 4th stage = 42.75 + 11.97 = 54.72 Z 42.75 to Capitalists 5th stage + 11.97 to original meansCapitalists 5th stage = 28.50 + 12.54 = 41.04 Z 28.50 to Capitalists 6th stage + 12.54 to original meansCapitalists 6th stage = 14.25 + 13.10 = 27.35 Z 14.25 to Capitalists 7th stage + 13.10 to original meansCapitalists 7th stage = 0 + 13.65 = 13.65 Z 13.65 to original means___________ __________299.75 Total demand from the 84.00 Total demand fromowners of capital goods the owners of o.m.(land and labor)____________________________________________Total Supply of Present Goods 383.75 m.u. 383.75 m.u. Total DemandOf which: for Present Goods1) 270.00 m.u. derive from real saved resources (real gross saving as shown in Table V-1) ___________2) 113.75 m.u. derive from credit expansion (unbacked by saving) 383.75 m.u. TOTAL*Gross Income for the Year (including 100 m.u. of net income): 483.75*Gross Income for the Year, prior to Credit Expansion (See Table V-2): 370.00__________Nominal Increase in Gross Income caused by Credit Expansion (unbacked by saving): 113.75