Money as flow…

Money is stock, but its effectiveness is a consequence of its attributes as a flow variable. The more it flows across the economic/financial system, the greater its value as stock.

A country’s wealth is significantly a consequence of how well its systems enable the flow of money from those who don’t know what to do with the excess of it to those who can do something with a very little of it.

Ideas and money. The thing is to always think of them as flow. Not stock.

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Posted on December 5, 2007, in Uncategorized and tagged . Bookmark the permalink. 6 Comments.

  1. I don’t know if that is an original thought..but it’s the first time I have been exposed to this concept. Well put b-on-the-w. Now I am thinking about it.

    You are a good friend to have; you make me use my brain.

  2. Itz not enuff to work and earn money, itz necessary to make the money work for you.

    Cool stuff!
    -Krish

  3. very nice…. i see ur ‘takin a step back and …’ 🙂 … yeah, lookin at the big picture

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