But the economy is just too complex to grasp without some sort of simple, realistic model. Attempts to build such models have floundered. Hayek’s Triangles, Böhm-Bawerk’s Concentric Circles, and the ...

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 ...