Abstract
In macroeconomic as in microeconomic analysis, it is important to distinguish stocks from flows. The accounts of a company can be used to illustrate the difference: a balance sheet is about stocks; a trading account is about flows. The same distinction also occurs in national accounts. The Keynesian income-expenditure tradition is about the economics of flows, as in Monetarism with attention focused on changes in the rate of growth of the money supply rather than on its level. The city University Debt-Deflation Conference held in April 1994, by contrast, was about balance sheets; that is, it was about stock economics. This is a subject which, although not ignored, has received much less attention than flow economics.
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© 1997 Forrest Capie and Geoffrey E. Wood
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Pepper, G. (1997). Opening Remarks. In: Capie, F., Wood, G.E. (eds) Asset Prices and the Real Economy. Studies in Banking and International Finance. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-25409-5_1
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DOI: https://doi.org/10.1007/978-1-349-25409-5_1
Publisher Name: Palgrave Macmillan, London
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Online ISBN: 978-1-349-25409-5
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