Capital and Money Flows

In monetary economics, capital refers to the financial assets and resources used to generate wealth, such as investments in businesses, real estate, or stocks. Money flows describe the movement of money within the economy, including how it circulates between individuals, businesses, and governments. This flow is essential for economic activity, as it helps facilitate transactions, fund investments, and support growth. Understanding these concepts helps us see how money influences economic health, as well as how shifts in capital and money movement can impact jobs, prices, and overall prosperity.