Cash Flows and National Accounts (Need New Satellite Account)

Abstract

The questions related to cash flows deserve greater attention than the one devoted on this subject nowadays. The reasons for such a conclusion are at least two circumstances. On the one hand this is their complexity, but on the other - the fact that they are an integral part of any micro- and macro-economic activity. Studies show that these questions have long engaged for both theoreticians and practitioners. Today they are again relevant. The need for their resolution is even higher in today’s turbulent economic development. For this purpose, however, it is necessary to find a reliable tool for the presentation of cash flows. Expectations that this is possible by the information contained in more widely used national accounts (Generalised System of National Accounts - SNA 2008 and the European System of National Accounts - ESA 2010) found no practical application. This is due to the fact that there is not reliable definition nor reliable coverage of cash flows. It is obvious that in this situation there is a need to create another satellite account to the national accounts to cover this gap. This is the main objective of the proposed material. In its first part issues about the definition and presentation of cash flows in the national accounts are discussed. The second part is dedicated to the opportunities to establish new satellite account to the national accounts for cash flows. The content of the third part is about ideas how to use the new satellite account.