Stock and Flow

By Dr. Swati Gupta January 17, 2021

Stock and Flow

Stock- Stock is defined as a certain amount or quantity at a specific point in time. Population, money supply, debts are the example of stock as they are measured at a specific point of time. For example, the amount of money in my bank account as of 1st January was Rs 50,000.

Flow- A flow is a quantity that can be measured in terms of a specific period of time. It can be measured an hour, a day, a week, a month, per year. Income, output, or profits are examples of flow because they occur in a period of time. For example, I withdraw Rs 5,000 per month.

Basis for comparison	Stock	Flow
Definition	Stock is defined as a certain amount or quantity at a specific point in time.	A flow is a quantity that can be measured in terms of a specific period of time.
Time dimension [Length of time]	A stock variable has no time dimension.	Flow variable has a time dimension.
Nature	Stock is static in nature as it is measured at a specific point of time such as On a particular date as 11th October.	Flow is dynamic in nature as it is measured at a specific period of time such as a week or a month or a year.
Impact	Stock impacts the flow. If the stock of the capital is more, the flow of the goods and services will also be more.	Flow also impacts the stock. If the flow of the income is more, the person will deposit more in the bank account, and the bank balance[stock] will be more.
Example	Foreign debts, loan, money supply, population	Income, expenditure, saving, interest, import, export, profit