Re: flow or stock?

[Clifford Poirot <cpoirot@xxxxxxxxxxx>]

I have been thinking (perhaps not very originally) that monetary variables
should be considered flow-stock-flow variables. It seems this would have
some implications for endogeneity as well. This would make money partially
endogenous, at times, but still dependent on a deposit base, and highly
variable.

-----Original Message-----
From: Kazuhiro Kurose [mailto:kurose@xxxxxxxxxxxxxxxxxxxxxx]
Sent: Thursday, August 01, 2002 12:53 AM
To: pkt@xxxxxxxxxxxxxxxx
Subject: flow or stock?


I have a question again. It is concerned with the distinction of flow and
stock. The notion of saving is categorized into a flow variable, therefore
a certain quantity of money as a part of saving is also categorized into a
flow. On the other hand, a certain quantity of money, which has previously
accumulated at the beginning of the period, is categorized into a stock
variable. In addition to money as a stock, we have the notion of securities
as stock in the sense of outstanding. The securities as stock can be traded
in a market. When they are sold in market, their owners receive money
instead of giving securities. What I'd like to know is whether money which
can be received as a result of selling outstanding securities should be
regarded as flow or stock.
Please give me a piece of advice!
**************************************
   Kazuhiro Kurose
   Graduate School of Economics and Business
   Administration, Hokkaido University
   Kita 9 Nishi 7, Kita-Ku, Sapporo, Japan
   060-0809
     TEL: +81-11-716-2111 ex:2786
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