Provides a comprehensive overview of a broad range of uses of the flow of funds within the central bank community as well as in the academic field, prepared by international experts in the field. Based on the crisis experience, it offers an overview of lessons for macrofinancial analysis and financial stability.

Peter Praet, European Central Bank, GermanyCarmelo Salleo, European Systemic Risk Board, GermanyRichard Werner, University of Southampton, UKRoberto A. De Santis, European Central Bank, GermanyCarlo A. Favero, Università Commerciale Luigi Bocconi, ItalyBarbara Roffia, European Central Bank, GermanyUlrich Bindseil, European Central Bank, GermanyAdalbert Winkler, Frankfurt School of Finance and Management, GermanyClaudio Borio, Bank for International Settlements, SwitzerlandRobert McCauley, Bank for International Settlements, SwitzerlandPatrick McGuire, Bank for International Settlements, SwitzerlandRiccardo De Bonis, Banca d'Italia, ItalyLuigi Infante, Banca d'Italia, ItalyFrancesco Paternò, Banca d'Italia, ItalyTobias Adrian, Federal Reserve Bank of New York, USAHyun Song Shin, Princeton University, USACelestino Gíron, European Central Bank, GermanySilvia Mongelluzzo, Bocconi University, ItalyS. Avouyi Dovi, Banque de France, FranceVladimir Borgy, Banque de France, FranceChristian Pfister, Banque de France, FranceMichael Scharnagl, Deutsche Bundesbank, GermanyFrank Sédillot, Banque de France, France Jacob Isaksen, Danmarks Nationalbank, DenmarkPaul Lassenius Kramp, Danmarks Nationalbank, DenmarkLouise Funch Sørensen, Danmarks Nationalbank, DenmarkSøren Vester Sørensen, Danmarks Nationalbank, DenmarkLaurent Maurin, European Central Bank, GermanyRiccardo Bonci, Banca d'Italia, Italy

Foreword; Peter Praet 1. Money, Credit and the Flow of Funds in Monetary Policy; Bernhard Winkler, Ad van Riet and Peter Bull PART I: MONEY, CREDIT AND LIQUIDITY IN THE FLOW OF FUNDS 2. The Quantity Theory of Money and the Flow of Funds; Carmelo Salleo 3. The Quantity Theory of Credit and Some of its Policy Implications; Richard Werner 4. Euro Area Money Demand and International Portfolio Allocation; Roberto A. De Santis, Carlo A. Favero and Barbara Roffia 5. Global Liquidity and Credit Booms; Claudio Borio, Robert McCauley and Patrick McGuire 6. Dual Liquidity Crises; Ulrich Bindseil and Adalbert Winkler 7. Determinants and Consequences of Credit Tightening; Riccardo De Bonis, Luigi Infante and Francesco Paternò PART II: SECTORAL ANALYSIS OF THE FLOW OF FUNDS 8. Financial Intermediary Balance Sheet Management; Tobias Adrian and Hyun Song Shin 9. Bank Leverage and the Credit Cycle in the Euro Area; Celestino Gíron and Silvia Mongelluzzo 10. Households' Financial Portfolio Choices; S. Avouyi Dovi, Vladimir Borgy, Christian Pfister, Michael Scharnagl and Frank Sédillot 11. Household Balance Sheets and Debt; Jacob Isaksen, Paul Lassenius Kramp, Louise Funch Sørensen and Søren Vester Sørensen 12. Analysing Recent Developments in the Financing of Euro Area Non-Financial Corporations; Laurent Maurin 13. Monetary Policy and the Flow of Funds in the Euro Area; Riccardo Bonci