The American Economist, Vol. 64, No. 1 (March 2019), pp. 45-59 (15 pages) Closed-system circular flow models have been ubiquitous in economics for at least half a century. Because these models account ...

This paper postulates the existence of a growth imperative in capitalist economies. The argument is based on a simple circular flow model of a pure credit economy, where production takes time. In this ...