This paper presents a general equilibrium model where money is essential and agents exchange in competitive markets. A fixed cost of production induces them to take vacations during some periods. Hence, money is saved to purchase consumption during vacations. We show that agents will choose to acquire and spend money in cycles of finite length, even though aggregates are stationary. At any given time, agents have different positions on the money cycle. Throughout the money cycle, agents decrease their consumption and decrease their sensitivity to the inflation tax. This explains why some sellers accept money even though everybody wants to escape the inflation tax -- an old paradox. Despite this stark "hot potato'' effect, inflation does not stimulate trade, and the Friedman rule gives optimal monetary policy.