An Integration of Financial and Capital Market

貯蓄

資本市場

資本形成

ワルラス

financial market

saving

capital market

capital formation

Walras

The purpose of this paper is to make a contribution to the materials about appropriate policies for financial and capital market in concentrating on a market formation process by following Walras' theory. Walras' financial theory especially made great strides in a short period, and that it had been approaching completion as the twentieth century model in the monetary demand-supply theory. Money in the industrial circulation process is converted into saving money by capitalists, and again it's reconverted into capital funds for entrepreneurs. This is monetary circulation that makes capital formation as exits of financial circulation from saving as way outs of industrial one. Besides, the saving level depends on the ground that one economic agent, in orderto maximize their utility, equates the value of the present to future marginal utility. On the other hand, in conjunction with the profit maximization hypothesis, the investement level relies heavily upon the demand and supply of the capital goods in Walras' generalised general equilibrium framework.