Integration of Market Exchange and money circulation circulation presented here is exactly associated with this exchange model, it is necessary to describe it first The economy that we consider here is highly decentralized. However we could imagine a special place, perhaps called the"trader center", where all possible traders have to come to express their desired transactions. This idea does not mean, as Walras imagined, that all trad will get together"standing face to face. (Walras, 1954, p. 41)Moreover there is no need for a market manager or an auctioneer. Instead, we can imagine that the trade center is divided by various rooms(or plots), each correspond ing to a particular commod ity. We can suppose the room(or plot) is rented, either individually or jointly, by the producers who produce that correspond ing commod ity. In practice, the place of this kind is very much similar to, for example New York's Javits center, where various trade fairs take place. All these mean that although our economy is highly decentralized, it is also highly efficient in the sense that information can asily be transmitted, and therefore search for a potential trading partner is relatively easy Consider an investor who comes to, say, a construction market to express that he wants to buy a building and thus as a result, a contract (order) is made between him and a certain construction company. The manager of this company will calculate the inputs, including labor, steel, and other raw material, etc, needed for producing that building and hence a visit is arranged to these various input markets. This will generate a series of other exchanges (contracts). Continuously, those who sell their outputs to(or get contract with) the construction company as suppliers will also visit their own input markets as demanders. Therefore more exchanges will follow. We can expect that the process will continue until it moves to its endpoint The existence of such an endpoint ind icates that the sequence of reflections created by our initial investor will finally converge to zero. 5 6. A mathematical proof to this point has been provided in Gong(1995)Integration of Market Exchange and Money Circulation 5 circulation presented here is exactly associated with this exchange model, it is necessary to describe it first. The economy that we consider here is highly decentralized. However we could imagine a special place, perhaps called the "trader center", where all possible traders have to come to express their desired transactions. This idea does not mean, as Walras imagined, that all traders will get together "standing face to face."(Walras, 1954, p. 41) Moreover there is no need for a market manager or an auctioneer. Instead, we can imagine that the trade center is divided by various rooms (or plots), each corresponding to a particular commodity. We can suppose the room (or plot) is rented, either individually or jointly, by the producers who produce that corresponding commodity. In practice, the place of this kind is very much similar to, for example, New York's Javits center, where various trade fairs take place. All these mean that although our economy is highly decentralized, it is also highly efficient in the sense that information can easily be transmitted, and therefore search for a potential trading partner is relatively easy. Consider an investor who comes to, say, a construction market to express that he wants to buy a building and thus as a result, a contract (order) is made between him and a certain construction company. The manager of this company will calculate the inputs, including labor, steel, and other raw material, etc., needed for producing that building and hence a visit is arranged to these various input markets. This will generate a series of other exchanges (contracts). Continuously, those who sell their outputs to (or get contract with) the construction company as suppliers will also visit their own input markets as demanders. Therefore more exchanges will follow. We can expect that the process will continue until it moves to its endpoint. The existence of such an endpoint indicates that the sequence of reflections created by our initial investor will finally converge to zero.5 6 . A mathematical proof to this point has been provided in Gong (1995)