Financial flows
Note to readers: Fourth quarter 2005
The Financial Flow Accounts (FFA) measure net lending or borrowing by
examining financial transactions in the economy by sector. The FFA arrive
at a measure of net financial investment which is the difference between
change in financial assets and liabilities (e.g., net purchases of securities
less net issuance of securities).
The Financial Flow Accounts also provide the link between financial and
non-financial activity in the economy which ties estimates of saving and
non-financial asset formation (e.g., investment in new housing) with the
underlying financial transactions.
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