National balance sheets - a new analytical tool

Quarterly Bulletin 1972 Q4
Published on 01 December 1972

For many years the Bank have been providing in the Bulletin a quarterly analysis of U.K. flow of funds statistics; and recently they have published a handbook which describes these accounts, their relationship to the national income accounts and their uses, such as in short-term forecasting.' The flow of funds accounts provide a convenient framework for the analysis of cash flows and for helping to identify some of the connections between various types of transactions. By themselves, however, they are not sufficient for a satisfactory understanding of the behaviour of the various sectors of the economy.

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