Abstract

Before publication of Keynes’ General Theory of Employment, Interest and Money in 1936, Germán Bernácer had discovered both third-degree net availables and second-class working capital two decades earlier in 1916, neither of which has yet been incorporated in today’s economics. This work undertakes the task, which results in a significant change to the fundamental equation: savings equals investment. To facilitate analysis we separate the process into three phases: the first introduces new availables or net availables of the third degree. The second adds second-degree working capital and the new money required to fund it. In the third we reach the final equation, the result of the two previous phases.