Studies in profit and capital formation: An alternative theory of distribution

A study is presented on production, consumption, and the investment of profit in a closed economy over a two-week period. Bernard Schmitt's analysis of production and capital formation was applied to numerical and theoretical examples. The broad objective of this inquiry is to detect apparent formal coincidences between Nicholas () formalization of the General Theory (1936) and the analytical formulation of the theory of the monetary circuit. () model is considered as a special case among those contemplated by Schmitt's monetary theory.