Question
Hernando de Soto makes two claims: Capital, like energy, is . . . a dormant value. What creates capital in the West . . .
Hernando de Soto makes two claims:
- "Capital, like energy, is . . . a dormant value."
- "What creates capital in the West . . . is an implicit process buried in the intricacies of its formal property systems."
Keeping Irving Fisher's concept of capital in mind, explain the economic cause-and-effect logic related to how those two claims work together to resolve "the mystery of capital." As part of your explanation, comment on why, from the perspective of entrepreneurs or businesses creating ever-more-valuable amalgams, Property Effect #4 (Making Assets Fungible) may be the most important effectbut also why this effect necessarily relies on the systemic support of the other five effects.
link :
https://yendieu.files.wordpress.com/2009/04/the-mystery-of-capital.pdf
Chapter 1-3
https://www.semanticscholar.org/paper/The-Mystery-of-Capital%3A-Why-Capitalism-Triumphs-in-Soto/bf9b6f1fe8a8de0dc328daef207c459e8c6f11f5
Chapters 1-3 of de Soto, H. (2000).The mystery of capital: Why capitalism triumphs in the West and fails everywhere else.New York, NY: Basic Books.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started