What Is a Flow of Funds?

Capital flow analysis is an economic analysis method that uses the capital flow accounting system to study and determine the relationship between currency inflows and currency outflows between sectors in the economy and society. Since the expenditure of an economic unit is also the income of other economic units, and each financial liability is an asset of other units, the capital flow accounting system reflects the overall status of the financial relations between various sectors in the economy and clearly shows The process of economic expansion and contraction.