Collection of Open Letters to Iranians and Iranian Economists
For financial effectiveness unlikely economical goods will have no intrinsic value and only they are valuable with social contracts and credits. The value of the money is related to the goods that we can buy with that and not because of the direct usage of the money, these days we have two common definitions for commercial money, M1 that are consisted of current monetary system and current deposit.
Second Definition: Vast definition of money, M2, that other than M1 includes the money with high liquidity such as saving accounts and the rates of interest that are paid for the movement and progression of business cycles. People for getting loans from banks that its investors are people and companies will pay as much interest freely because the fees paid to them from the bank will empower them buy their requirements and they can invest for earning profit. The production of such system is called business cycles.
After mathematics there has been an absolute convergence between economic growth and business cycles.
Regarding the theory of growth and business cycles and their relation with mathematical functions, economical effectiveness, environmental effectiveness is a criterion or an approach that will lead to efficiency in the theory of growth and business cycles and will maximize the management performance. On the strength of mathematical functions, we will have the third-degree function