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infospace: process book-2-chapter-02

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Extract entities, map to VSM, and synthesize analysis.
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Bernd Worsch
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
# Water-Pond Metaphor
## Definition
Smith's analogy comparing a well-functioning bank to a pond where water flows in and out at equal rates, maintaining a constant level. This illustrates how proper banking maintains steady circulation without requiring excessive reserves.
## Source Chapter
Book II, Chapter 2
## Context
Smith uses this metaphor to explain how a properly managed bank can maintain steady operations when its lending and repayments are balanced. The metaphor illustrates the ideal relationship between bank advances and repayments.
## Economic Domain
General Theory
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