Flow of Funds Analysis : Innovation and Development This book discusses the theory methods and applications of flow of funds analysis. The book integrates the basic principles of economic statistics financial accounts international finance econometric models and financial network analysis providing a systematic and comprehensive introduction to the interconnection between these research fields. It thus provides the reader with the intellectual groundwork indispensable for understanding the workings and interactions of today’s globalized financial markets. The main focus of the book is how to observe the flow of funds in macroeconomics how to measure the global flow of funds (GFF) and how to use GFF data to carry out an analysis. Based on the statistical framework for measuring GFF under the System of National Accounts the book identifies the systematic relationship of financial linkages among economic sectors and with the rest of the world while integrating data sources that include stock data geographically broken down by country–region and selected financial instruments. It sets out the GFF concept and constructs a GFF matrix (metadata) on a from whom to whom basis within a country by country pattern. Lastly an established GFF matrix table is used to conduct an empirical study including an econometric model and financial network analysis. Part 1: Methods and Applications for Flow of Funds Analysis Chapter 1. The Basic Structure and Main Modes of Flow of Funds Accounts Chapter 2. Statistical Observations Mentioned in Chinese Flow of Funds: 1992 2017 Chapter 3. Measuring the Ripple Effect and Financial Risk in China’s Flow of Funds Chapter 4. The Mirror Image Relationship between China and the U.S. in the External Flow of Funds Part 2. Measuring Global Flow of Funds Chapter 5. From the Flow of Funds Accounts to Global Flow of Funds Statistic Chapter 6. A Framework for Global Flow of Funds Matrix Chapter 7. Measuring Global Flow of Funds: Data Sources Approaches and Big Data Techniques Chapter 8. The Theoretical Model for Global Flow of Funds Analysis Part 3. Methods and Applications for Global Flow of Funds Analysis Chapter 9. A Statistical Monitoring System of Global Flow of Funds: Financial Stability in China Chapter 10. Measuring Global Flow of Funds: A Case Study on China Japan and the United States Chapter 11. Global Flow of Funds and Uncertainty: Focus on the Cross Border Banking Financing Chapter 12. Financial Network Analysis on Global Flow of Funds in G20.