The Yield From Money Held

On Freedom and Free Enterprise: Essays in Honor of Ludwig von Mises (Mary Sennholz)
- Highlight Loc. 4256-59  | Added on Thursday, September 29, 2011, 12:46 AM

Hence money does not do its work by circulating. The common analogies of “the circulation of the blood,” or “the oil of a machine,” are both bad analogies. Because money units are exchange media, they just happen to change ownership more than other types of assets. If we imagine that the work of money is circulation, then we must conclude that money is always idle; for the transfer of money must be regarded as instantaneous!