The analysis deals mainly with the flow of funds between the various sectors in the second quarter of 1971 , the latest period for which a full set of statistics is available. Comment on the third quarter is largely confined to the banking sector, money supply, and central government financing. The analysis is based throughout on seasonally adjusted figures. Unadjusted quarterly flows are given in matrix form in Table K. A seasonally adjusted matrix of flows is provided in Table L. Some important series, including the monetary aggregates shown in Table J, have been revised to take account of a new allocation of transit items between bank advances and bank deposits (see page 484). Notes on sources and methods begin on page 474.