The Circular Flow Model in a Modern Economy

The venerable Circular Flow model is getting long in the tooth. It excludes the government sector, has nothing to say about economic growth, ignores the behavior aspect of economics and is rooted in the present while the economy is forward-looking.

The Webinar is about a new teaching model of the economy called the Production, Property, and Power Model. This updated model of the circular flow connects the usual production/consumption to the savings and investment activity in the economy and the government sector of the modern economy. Four representative characters (representing consumers, entrepreneurs, bankers and politicians) in the model illustrate how the cycles of production, investment and tax/spend government choices interact and strive to reach a balance.

About the Presenter:
Gordon C. Boronow is Associate Professor of Business and Economics and Department Head for the Department of Business and Accounting in the School of Business and Leadership at Nyack College. He received a Ph.D. in Economics from Stony Brook University in 2008. His research interests are the economics of social security, macroeconomics, behavioral economics, and monetary economics. Professor Boronow has presented at numerous conferences. In 2019, Professor Boronow published the book Production, Property & Power: Making Sense of the Economy, a sophisticated new teaching model of how the economy functions.
Prior to his academic career, Mr. Boronow worked 27 years in financial services. He became a Fellow of the Society of Actuaries in 1980. His actuarial career included stints at Equitable Life (NYC, NY), Connecticut Mutual Life (Hartford, CT) and American Skandia Life Assurance Corp. (Shelton, CT).