The Circular Flow of the Economy

Money flows in a continuous loop between households, businesses, government, and financial institutions. Click nodes or use the steps below to explore each flow.

🏠
Households
$155T net worth
🏢
Businesses
8M establishments
🏛
Government
$10T spending
🏦
Financial System
$130T assets
🌐
Foreign
$3.5T imports
Consumer Spending
Wages & Profits
Taxes
Transfers
Savings
Loans
Exports
Imports
The Economy as a Circuit
Money flows continuously through the economy like electricity through a circuit. Households earn income from businesses, spend it on goods and services, pay taxes to government, and save through financial institutions. Each flow creates another flow, keeping the circuit running.

Source: Federal Reserve Flow of Funds (Z.1), BEA National Income Accounts