The Circular Flow Diagram has dominated economic thought for over a century. Yet, all along we’ve known its shortcomings: over-aggregation, static capital, instantaneous production, and homogeneous ...

The circular-flow diagram’s greatest problem is, in fact, its circularity. While real-world economic analysis has a beginning, an ending, and ever-changing processes, the circular-flow diagram has no ...

Article citations More>> Patinkin, D. (1973). In Search of the “Wheel of Wealth”: On the Origins of Frank Knight’s Circular-Flow Diagram. The American Economic Review, 63, 1037-1046. has been cited by ...