An Essay on Economic Theory

2.4. Further Reflection on the Rapidity or Slowness of the Circulation of Money in Exchange

An Essay on Economic Theory by Richard Cantillon
Richard Cantillon

Large transactions can be accomplished with the use of bills of exchange or barter, which reduces the demand for money. Ordinary transactions by people require actual coin money in circulation. A variety of factors, therefore, affect the flow of money in circulation and this in turn affects the amount of money in circulation.

From Part 2: Money and Interest. Narrated by Millian Quinteros.