Stocks and Flows
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Stocks and Flows
I actually think stock and flow is a useful metaphor for media in the 21st century. Here’s what I mean:
Flow is the feed. It’s the posts and the tweets. It’s the stream of daily and sub-daily updates that reminds people you exist.
Stock is the durable stuff. It’s the content you produce that’s as interesting in two months (or two years) as it is... See more
Flow is the feed. It’s the posts and the tweets. It’s the stream of daily and sub-daily updates that reminds people you exist.
Stock is the durable stuff. It’s the content you produce that’s as interesting in two months (or two years) as it is... See more
Two Economies, Not One
As I have written in previous posts, the are two economies, not one. One is the Flow Economy that produces goods and services. The other is the Balance Sheet Economy that stores wealth
Dr. John Rutledge • How to Think About the Deficit, the National Debt, and Interest Rates
The flow economy is dynamic; you can think of GDP accounts as the economy’s Profit and Loss (P&L) statement. It measures what we are doing, using metrics expressed in dollars per year like consumption, savings, investment, government spending, taxes, net exports, and GDP. Things expressed per unit of time measure speed, like miles per hour on your
... See moreDr. John Rutledge • How to Think About the Deficit, the National Debt, and Interest Rates
I don’t know how many times I have to keep saying this before the rest of the profession figures it out. Never reason from a price change. It makes no sense to argue whether a higher price will increase or decrease quantity. Here is a S&D diagram. I dare you to show me how price changes affect quantity.
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](https://substackcdn.com/image/fetch/f_au
... See moremacrolens.substack.com • Reasoning From a Price Change - By Brian McCarthy
The Balance Sheet Economy is static; it measures what we own , not what we are doing*.* Its metrics are expressed as stocks of assets that exist at a moment in time. For example, on December 31, 2022 there were 142 million existing homes in the U.S.