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# Two Branches of Circulation

## Definition

The distinction between circulation among dealers (wholesale) and circulation between dealers and consumers (retail). Each requires its own stock of money, with wholesale transactions typically requiring larger sums that circulate more slowly.

## Source Chapter

Book II, Chapter 2

## Context

Smith analyses how circulation divides into two distinct flows, explaining why different amounts of money are needed for each. He uses this distinction to discuss how paper money can be regulated to serve different types of transactions.

## Economic Domain

Exchange

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