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The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction.
A circular economy (also referred to as circularity or CE) [1] is a model of resource production and consumption in any economy that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.
The model is best viewed as a circular flow between national income, output, consumption, and factor payments. Savings, taxes, and imports are "leaked" out of the main flow, reducing the money available in the rest of the economy. Imported goods are one way this may happen, transferring money earned in the country to another one. [1]
Import and export were represented by water draining from the model and by additional water being poured into the model. The flow of the water was automatically controlled through a series of floats, counterweights, electrodes, and cords. When the level of water reached a certain level in a tank, pumps and drains would be activated.
The main indicator system used to measure China's circular economy is an altered version of the European Union's (EU) material flow analysis (MFA). [19] MFA is a quantitative method of measuring the flow of natural resources and materials through various scales of economy, which can range from whole cities to single rivers. [20]
A B.C. Liquor Store employee demonstrates removing bottles of American whiskey for media before a news conference in Vancouver, B.C., Sunday, Feb. 2, 2025. (Ethan Cairns/The Canadian Press via AP)
Image source: The Motley Fool. Equinix (NASDAQ: EQIX) Q4 2024 Earnings Call Feb 12, 2025, 5:30 p.m. ET. Contents: Prepared Remarks. Questions and Answers. Call ...
Circular flow of income; Control flow diagram, a diagram to describe the control flow of a business process, process or program; Cumulative flow diagram, a tool used in queuing theory; Functional flow block diagram, in systems engineering; Data flow diagram, a graphical representation of the flow of data through an information system