An excellent piece of analysis of Flow of Funds data at the Bank of England:
Richard Barwell and Oliver Burrows, “Growing fragilities? Balance sheets in The Great Moderation”, Financial Stability Paper No. 10 – April 2011
Yannis Dafermos (2012) “Liquidity preference, uncertainty, and recession in a stock-flow consistent model”, Journal of Post Keynesian Economics, 34 (4), 749-776.
This paper develops a stock-flow consistent model that explicitly integrates the role of liquidity preference and perceived uncertainty into the decision-making process of households, firms, and commercial banks. Emphasis is placed on (1) the link between the precautionary motive and the asset choice of the private sector, (2) the effect of perceived uncertainty on the desired margins of safety and borrowing, and (3) the impact of financial obligations on the liquidity preference of households and firms. Performing a simulation experiment, the paper illuminates the channels through which a rise in perceived uncertainty is likely to set off a recessionary process.
Keywords: liquidity preference, perceived uncertainty, recessionary process, stock-flow consistent modeling