I'm trying to understand the nature of wealth. Specifically, I want to know if wealth should be considered as a stock, which represents an accumulation or reserve, or a flow, which represents a continuous movement or transfer.
7 answers
InfinityRider
Tue Dec 31 2024
When discussing economic concepts, stocks and flows serve distinct purposes.
CryptoLord
Tue Dec 31 2024
Wealth can be categorized as a stock, as it reflects the total value of assets at a given point.
CryptoMagician
Tue Dec 31 2024
A
Flow represents the change that occurs within a specific timeframe.
Davide
Tue Dec 31 2024
For instance, the worth of one's property, savings, and investments can be assessed at a specific date.
KimonoElegance
Tue Dec 31 2024
Income, on the other hand, is considered a flow because it measures the accumulation of earnings over a period.