Law of Money Circulation, an economic law determining the amount of money necessary for circulation. The amount of money in circulation depends, above all, on 1) the-bulk of commodities in circulation, 2) the level of commodity prices and 3) the rate of money circulation. The total amount of money is the sum total of 194 commodify prices divided by the velocity of the circulation of the corresponding monetary units. Money functions not only as a medium of circulation, but also as a means of payment. For this reason, the sum total of money in circulation at a given velocity of circulation is equivalent to the sum total of the prices of commodities sold, minus the sum total of prices of commodities sold on credit, plus the sum total of payments due to be made, minus the sum total of mutually settled payments, all divided by the number of circuits of the corresponding monetary units. Under capitalism, the amount of money circulation is determined spontaneously. Under the conditions of metal coin currency and free exchange of paper money for gold, as was the case before World War I, money circulation was automatically adjusted to the demand for it. Excess money went to the hoard, and additional money was taken out when needed. At present the capitalist countries circulate paper money and token coins for small-scale turnover. The growing instability of the capitalist economy during the general crisis of capitalism, the militarisation of the economy and the issue of paper money in enormous amounts to finance military spending result in a flooding of circulation channels with excess paper money and its depreciation, that is to say, in inflation. Socialist society uses the law of money circulation, just as the other economic laws of socialism, on a planned basis. This is manifested in the fact that the total commodity turnover and the level of commodity prices are fixed in a planned way (with the exception of collective farm market trade). Planned money circulation is of paramount importance in maintaining the necessary proportions between the amount of money received by the population and the bulk of commodities and services sold. The socialist economy makes wide use of clearing in realising almost the entire bulk of the means of production and the wholesale trade in consumer goods, which reduces the need for cash. This not only makes money circulation more economical, but also facilitates the planning of the issue of money.