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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 effect—but also why this effect necessarily relies on the systemic support of the other five effects.

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Hernando de Sotos claims are related to his concept of the mystery of capital and how it can be resolved To understand the economic causeandeffect logic behind these claims we need to consider Irving ... blur-text-image

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