Integration of Market Exchange and money circulation We might call this endpoint an equilibrium. It is not the usual demand-supply equili is an equilibrium(in the Nash sense) correspond ing to our initial investment. In practice, an "end point "may never exist since more investors and other autonomous demanders will come in succession before the end of the reflections created by the previous investor. Furthermore, the time taken by the sequence of reflections due to a certain autonomous demand may be very long All these indicate that the trades. which seem to be carried in a disordered random fashion in our daily life, intrinsically proceed orderly: they are the reflections or multiplier effects due to certain (not necessarily one type of) prev ious autonomous demands-though it is always difficult, actually impossible, to distinguish which reflection (or exchange) is attributed to which autonomous demand We now turn to show that such a trad ing process is naturally integrated with a process of money circulation Money circulation, an Inward-looking in Real Market We may distinguish two types of inward-looking of money circulation: one is in the real market and the other in the financial market. Our previous discussion is about the market exchanges in the real market, from which we have known that an investor can be regarded as a starting point of a sequence of market exchanges. Since investment is only a paid-out, we thus can expect that the money is injected into the real market once the investment expenditure is paid out. Where the money comes from of the investor is related to the process of financial exchanges and hence turns out to be another inward-looking of money circulation. The circulation in financial market will be the subject of the next section. In this section, we assume that our supposed investor has enough money in his account for him to pay his investment expenditure The money circulation without financial exchanges can be imaged as in Figure(1)Integration of Market Exchange and Money Circulation 6 We might call this endpoint an equilibrium. It is not the usual demand-supply equilibrium. It is an equilibrium (in the Nash sense) corresponding to our initial investment. In practice, an "endpoint" may never exist since more investors and other autonomous demanders will come in succession before the end of the reflections created by the previous investor. Furthermore, the time taken by the sequence of reflections due to a certain autonomous demand may be very long. All these indicate that the trades, which seem to be carried in a disordered random fashion in our daily life, intrinsically proceed orderly: they are the reflections or multiplier effects due to certain (not necessarily one type of) previous autonomous demands ⎯ though it is always difficult, actually impossible, to distinguish which reflection (or exchange) is attributed to which autonomous demand. We now turn to show that such a trading process is naturally integrated with a process of money circulation. Money Circulation, an Inward-looking in Real Market We may distinguish two types of inward-looking of money circulation: one is in the real market and the other in the financial market. Our previous discussion is about the market exchanges in the real market, from which we have known that an investor can be regarded as a starting point of a sequence of market exchanges. Since investment is only a paid -out, we thus can expect that the money is injected into the real market once the investment expenditure is paid out. Where the money comes from of the investor is related to the process of financial exchanges and hence turns out to be another inward-looking of money circulation. The circulation in financial market will be the subject of the next section. In this section, we assume that our supposed investor has enough money in his account for him to pay his investment expenditure. The money circulation without financial exchanges can be imaged as in Figure (1):