Flow Of Funds (FOF)
What Are Flow of Funds (FOF)?
Flow of funds (FOF) are financial accounts that are utilized to follow the net inflows and outflows of money to and from different sectors of a national economy. Macroeconomic data from flow of funds accounts are collected and broke down by a country's central bank. In the United States, this data is released by the Federal Reserve Bank roughly 10 weeks after the finish of each quarter.
Note that an alternate term "fund flows" is utilized to denote the amount of assets moving all through various types of mutual funds, for example among equity and fixed income funds.
Understanding Flow of Funds Accounts
The FOF accounts are utilized principally as a far reaching performance indicator. The data from the FOF accounts can measure up to prior data to break down the financial strength of the economy at a certain time and to see where the economy might go from now on. The accounts can likewise be utilized by governments to figure out monetary and fiscal policy.
The accounts use [double-passage bookkeeping](/twofold section) to follow the changes in assets and liabilities in all sectors of the economy: families, nonprofit organizations, corporations, cultivates, the government (federal, state and neighborhood) and the foreign sector. A great many financial instruments is accounted for: Treasury assets, American deposits abroad, savings deposits, money market funds, pension funds, corporate equities and bonds, mutual fund shares, mortgages, and consumer credits are just a couple of models.
The Fed's annual flow of funds data stretches out back to 1945, with quarterly data accessible from the very start of 1952. The data give a nuanced image of how the size and piece of the U.S. economy have impacted since World War II.
Flow of Funds Data
The Fed issues reports on the financial accounts of the U.S. on a trailing quarterly basis, remembering data for flow of funds. The release, which the Fed names Z.1, shows the assets and liabilities of every sector of the economy toward the finish of the period being referred to. It likewise shows how every sector has filled in as a source and utilization of funds. It incorporates a times series of outstanding debt for every sector of the economy, the deduction of net wealth in the country by asset, and the distribution of gross domestic product (GDP). Point by point statements for each account show how net capital has moved to or from different sectors, considering a granular gander at the movement of funds inside the economy, as well as into and out of it.
Features
- Figures measuring the scale and scope of flow of funds in a country's economy are collected and dispersed by the central bank for economic analysis.
- This FOF analysis can then be utilized to measure economic activity and anticipate changes in GDP. They can likewise be utilized to assist with illuminating fiscal and monetary policy.
- Flow of funds (FOF) are national financial accounts that track the movement of money among industries or sectors of the economy.
