Monetary Economics

Monetary economics is a branch of economics that deals with money and its role and usage in economic field. Monetary economics still remains thoroughly linked to macroeconomics. Monetary economics provides a framework for analyzing the role and functions of money as a medium of exchange, a store of value, and a unit of account. The monetary economics study takes into account the acceptance that money can gain purely because of its convenience as a public good and implications of money as a substitute for other assets. It examines the effects of monetary systems, including regulation of money and associated financial institutions and international aspects.

Today, money controls and dictates almost all the elements of the society. Now when whatever involves ‘transfer of money’ also involves ‘economics’, the significance of monetary economics as a separate and important discipline of economics needs no more explanation.