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It's called a mini-roundabout in the UK, and we have loads of them (although here the central circle is generally filled in with white paint). It gives a run-out area if needed, and allows you to drive straight through when traffic is very light (middle of the night, for example).
In addition, it requires less space than a full roundabout with a traffic island in the centre, and consequently can be retro-fitted to any junction in a pre-existing road network.
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Overhead, the Albatross hangs motionless upon the air,
And deep beneath the rolling waves,
In labyrinths of Coral Caves,
The Echo of a distant time
Comes willowing across the sand;
And everthing is Green and Submarine
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