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infospace: process book-2-chapter-02

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Extract entities, map to VSM, and synthesize analysis.
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
# Bank Circulation Limits
## Definition
The maximum amount of paper money that can circulate in an economy without causing instability or returning to the issuing bank for redemption. This limit is determined by the needs of commerce and the quantity of precious metals that would otherwise circulate.
## Source Chapter
Book II, Chapter 2
## Context
Smith analyses how banks must limit their note issuance to the amount that can be absorbed by the economy's circulation needs. He explains the mechanisms by which excessive circulation returns to the bank and the consequences of exceeding these limits.
## Economic Domain
Regulation
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