---
entity_slug: circulation_of_money
evaluator: null
evaluated_at: '2026-02-23T04:43:11.976659'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures the continuous movement aspect of money
    and its role in facilitating transactions. It avoids circularity by explaining
    the function (distributing revenue, enabling exchanges) rather than just restating
    "circulation."
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Book II, Chapter 2, where Smith
    explicitly analyzes how money circulates through the economy and distinguishes
    between the circulation of money versus the circulation of goods. The entity accurately
    reflects Smith's actual discussion.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Exchange" is the correct domain placement since circulation of money
    is fundamentally about the medium that enables exchanges between parties. This
    is a core mechanism of how exchange systems function in Smith''s analysis.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S1 (as
    a primary operational mechanism) or S2 (as a coordination mechanism that prevents
    transaction bottlenecks). However, it's somewhat abstract and could be considered
    a foundational process that underlies multiple VSM systems.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: This entity provides strong explanatory value by illuminating the mechanism
    through which economic transactions are facilitated and revenue is distributed
    throughout society. It explains a fundamental structural process rather than merely
    naming a surface phenomenon.
---

# Evaluation: Circulation Of Money

## definition_precision — 4.0 / 5.0

The definition clearly captures the continuous movement aspect of money and its role in facilitating transactions. It avoids circularity by explaining the function (distributing revenue, enabling exchanges) rather than just restating "circulation."

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Book II, Chapter 2, where Smith explicitly analyzes how money circulates through the economy and distinguishes between the circulation of money versus the circulation of goods. The entity accurately reflects Smith's actual discussion.

## domain_placement — 5.0 / 5.0

"Exchange" is the correct domain placement since circulation of money is fundamentally about the medium that enables exchanges between parties. This is a core mechanism of how exchange systems function in Smith's analysis.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S1 (as a primary operational mechanism) or S2 (as a coordination mechanism that prevents transaction bottlenecks). However, it's somewhat abstract and could be considered a foundational process that underlies multiple VSM systems.

## explanatory_value — 4.0 / 5.0

This entity provides strong explanatory value by illuminating the mechanism through which economic transactions are facilitated and revenue is distributed throughout society. It explains a fundamental structural process rather than merely naming a surface phenomenon.
