ABSTRACT
The statement of the problem It follows from the definition of money in terms of the ritual of payment that it is subject to a continuing process of distribution. This is what the ‘circulation’ of money means. As a result of this process, every transactor in a sphere of payment will have, at any given moment, a monetary position, established by the money he holds (in all possible different types) and the debts he owes, which together-in combination with his own monetary ‘history’ and the money games open to him-determine his monetary standing. This is generally conceived of in terms of ‘liquidity’, which is a measure of the scope of any transactor to continue playing the money games of interest to him.
