June 20, 2024

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circulation

In monetary economics, circulation refers to the continuing use of individual units of a currency for transactions. Thus currency in circulation refers to the total value of currency (coins and paper currency) that has ever been issued minus the amount that has been removed from the economy by the central bank. More broadly, money in circulation refers to the total money supply of a country, which can be defined in various ways always including currency and also including some types of bank deposits.

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