Quarterly Journal of Austrian Economics
Author:
Barry Dean Simpson
Scott A. Kjar
Online Publish Date:
Volume 8, No. 4 (Winter 2005) 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. While real-world economic analysis has a beginning, an ending, and ever-changing processes, the circular-flow