ABSTRACT
Aggregate income accounting is the centrepiece of Keynesian macroeconomics. A key element of this analysis is the distinction between stocks and flows. A stock is a value of the macroeconomic variable under consideration at a point in time, say the money supply in Kenya on 1 January 2002 or the capital stock of Sri Lanka on 1 December 1900. A flow measures a rate per unit time. National income during the calendar year 2001 or additions to a country’s plant and equipment during 2001 or private consumption expenditure during 2001 are all examples of flows.
