what is real flow and monetary flow
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Money flow and real flow are the two main aspects of the circular flow of income economic model. Both refer to exchanges of goods and services for money, but the two concepts differ in how they refer to the opposite sides of these exchanges as they relate to individuals and companies.
Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments
KEY TAKEAWAYS
Money flows depict the way that money and credit circulate in the economy as income turns into savings and investment and back again.
Real flows depict the way that commodities and products & services are produced and consumed in the economy.
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