The **method of circulation analysis** resembles more the method of arithmetic than the method of botany.

A first step is to offer some definition of the positive integers, 1, 2, 3, 4…. … Further, let us suppose as too familiar to be defined, the notions of ‘

one’, ‘plus’, ‘equals’…. As the acute reader will see, the one important element in the above series of definitions, is the etc., etc., etc…It means that an insight should have occurred. If one has had the relevant insight, if one has caught on, if one can see how the defining can go on indefinitely, no more need be said … In defining the positive integers there is no alternative to insight. … A single insight is expressed in many concepts. In the present instance, a single insight grounds an infinity of concepts. (CWL 3, 13-14/38-39)The

method of circulation analysisresembles more the method of arithmetic than the method of botany. It involves a minimum of description and classification, a maximum ofinterconnectionsandfunctional relations. … only a few of the integral numbers in the indefinite number series are classes derived from descriptive similarity; by definition, the whole series is aprogressionin which each successive term is afunction ofits predecessor. It is this procedure that gives arithmetic its endless possibilities of accurate deduction; and … it isan essentially analogous procedurethat underlies alleffective theory. … (CWL 21, 111) (See Understanding All in a Unified Whole)For example, the

positive integersare an infinite series ofintelligibly related terms. … But besides the terms and their relations there is thegenerative principleof the series; inasmuch as that generative principle is grasped, one grasps the ground of an infinity of distinct concepts. Still, what is the generative principle? It is intelligible, for it is grasped, understood. But it cannot be conceived without conceiving what an insight is,for the real generative principle of the series is the insight; and only those ready to speak about the insight are capable of asking and answering the question, How does one know the infinite remainder of positive integers denoted by the ‘and so forth’? … (CWL 3, 647/670)

Circulation analysis is based upon** intelligibly-related, implicitly-defined terms**. The terms are defined by their **explanatory** **functional relations** to one another.

On this model circulation analysis raises a large superstructure of terms and theorems upon a summary classification and a few brief analyses of typical phenomena.

Classesof payments quickly becomeratesof payment standing in themutual conditioning of a circulation; to this mutual and, so to speak,internal conditioningthere is added theexternal conditioningthat arises out of transfers of money from one circulation to another; in turn thistwofold conditioningin the monetary order iscorrelated with the conditioning constituted by productive rhythms of goods and services………There results a closely knitframe of referencethat can envisage any total movement of an economy as afunction of variations in ratesof payment, and that candefine the conditionsof desirable movements as well asdeduce the causesof breakdowns…(CWL 15, 18) (#94) (Click here for previous Brief Items)