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# Circulation of Money

## Definition

The continuous movement of money through the economy as it passes from hand to hand in exchange for goods and services. This circulation distributes revenue to different members of society and facilitates all economic transactions.

## Source Chapter

Book II, Chapter 2

## Context

Smith analyses the circulation of money as distinct from the goods being circulated, arguing that money itself makes no part of a society's revenue. He explains how the same money pieces can facilitate multiple transactions.

## Economic Domain

Exchange

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