Circular flow model from the point of view of the capital theory of Austrian School

Main Article Content

Dawid Bródka
Andrzej Jędruchniewicz


Keywords : Austrian School, theory of capital, circular fl ow model, structure of production model
Abstract
The aim of the article was to assess the circular flow model from the point of view of the theory of the Austrian School. The article discusses the theory of capital and the production structure model of this school. The issues discussed were related to the circular flow model that dominates the mainstream of economics. This model is criticized by the Austrian School because of too much simplification. The main allegations relate to the omission of: the creative nature of human action, the problems of imperfect knowledge and entrepreneurship that is associated with risk, the role of time in action and the production process, the vertical nature of production in the economy, linking savings and investments. The Austrian School also points to the aggregation of economic categories going too far in the circular flow model.

Article Details

How to Cite
Bródka, D., & Jędruchniewicz, A. (2019). Circular flow model from the point of view of the capital theory of Austrian School. Zeszyty Naukowe SGGW - Ekonomika I Organizacja Gospodarki Żywnościowej, (126), 17–28. https://doi.org/10.22630/EIOGZ.2019.126.7
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