Heat the olive oil in a large pot over medium-high heat. Add the beef and cook until browned on all sides.
Reduce the heat to medium, add the onions and garlic, and sauté until the onions are translucent.
Stir in the paprika and caraway seeds, and cook for another minute.
Add the tomatoes, beef broth, and bay leaves. Bring to a simmer and cook for about 1 hour.
Add the potatoes and continue to cook for another 30 minutes, or until the potatoes are tender.
Mix the flour paste into the goulash to thicken the sauce. Cook for an additional 10 minutes.
Season with salt and pepper to taste, and remove the bay leaves before serving.