In economics, flow refers to the numerical value of a certain economic variable change that occurs within a certain period. It is measured within a certain period, and its size has a time dimension; for example: reflecting social products The GDP and the production and distribution of labor services, the total income of workers, the total investment, the increase in working capital, etc. are all flows.

Corresponding to this is stock, which is measured at a certain point in time, and its size has no time dimension. For example: the beginning and end assets, working capital, deposits, gold reserves, foreign exchange reserves, etc. in the balance sheet are all stocks.

The division of stocks and flows is crucial to understanding the relationship, characteristics and effects of various economic variables in economic activities. For example, among the two economic variables of wealth and income, wealth is a stock, which is the property held at a certain moment; income is a flow, which is measured by the flow rate of money earned or received. There is a close relationship between stock and flow.

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1. Stock and flow

For understanding the relationship between various economic variables in economic activities and their Characteristics and functions are crucial. For example, among the two economic variables of wealth and income, wealth is a stock, which is the property held at a certain moment; income is a flow, which is measured by the flow rate of money earned or collected. There is a close relationship between stock and flow.

The flow comes from the stock, for example, a certain national income comes from a certain national wealth; the flow belongs to the stock, that is, the stock can only change through the flow, for example, the newly increased national wealth is created by the new calculated based on national income.

2. Stock and flow information

Stock information (stock) is information about the business attitude and philosophy of the enterprise, which is accumulated and immovable.

Flow information (flow) refers to the new product information and new technology information in the information sent by the enterprise. It changes with the changes of products and technologies in different periods. It is floating and changing.

3. Summary

Stock analysis and flow analysis are widely used analytical methods in modern Western economics. Stock analysis is to analyze the value of the existing economic aggregate at a certain point in time and its impact on other economic variables; flow analysis is to analyze the changes in the relevant economic aggregate within a certain period of time and its impact on other economic aggregates. Perform analysis. In the aggregate analysis of macroeconomics, we can start from either the stock or the flow.

For example: M2 is the concept of stock, and GDP is the concept of flow.

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