The obtuse Circular Flow Diagram has simply won by default. And what a victory! Every high school and college econ text puts it front and center. Thus, countless millions have a cartoonish mental ...

The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back ...

The circular-flow approach is decidedly Neoclassical, and suffers from many problems which traditional Austrians would notice. The circular-flow diagram’s greatest problem is, in fact, its circularity ...

The circular flow model is aptly named because funds tend to flow continuously between sectors. This diagram shows how money often flows from one sector to another, awarding benefits along the way.