Monetary economics

thumb|upright=1.5|Euro [[banknotes and coins]]

In economics, deflation is an increase in the real value of the monetary unit of account, as reflected in a decrease in the general price level of goods and services exchanged, measurable by broad price indices.

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Bimetallism, also known as the bimetallic standard, is a monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, creating a fixed rate of exchange between them. In all known historical cases, the metals are gold and silver.

banking system where bank holds reserves equal to fraction of deposit liabilities

branch of economics that studies different theories of money

theory in monetary economics

money function, unit of value that can be treated as a standard in accounting or economic analysis

portion of the commercial banks' reserves that are maintained in accounts with their central bank plus the total currency circulating in the public

set of institutions by which a government provides money in a country's economy

reduced form approximation of the responsiveness of the nominal interest rate, as set by the central bank, to changes in inflation, output, or other economic conditions

situation in which grave doubt exists as to whether a central bank has enough forex reserves to maintain an exchange rate, often with a speculative attack in forex markets

movements to amend the financial systeem

thumb|400px|Starting with Nero in AD 64, the Romans continuously debased their silver coins until, by the end of the 3rd century, hardly any silver was left. A debasement of coinage is the practice of lowering the intrinsic value of coins, especially when used in connection with commodity money, such as gold or silver coins, while continuing to circulate it at face value. A coin is said to be debased if the quantity of gold, silver, copper or nickel in the coin is reduced.

interdisciplinary distributive philosophy

estimate of future interest rates

cost associated with owning or holding currency over a given period

risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy, as opposed to specific risk associated with any one individual entity, group or component of a system

economic idea that a change in the money stock affects only nominal variables (e.g. prices, wages, exchange rates) without affecting real variables (e.g. employment, real GDP, real consumption)

macro-economic aggregate/variable

rate of money changing hands

inertia of prices in economics

the demand for money, considered as liquidity

theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation

Chartalism is a theory in macroeconomics that views money as a pure creation of the state, introduced to control and organize economic activity rather than arising from barter or debt. It holds that fiat currency has value because governments impose taxes that must be paid in the currency they issue, creating demand for it.

act of providing a person with things of economic value

1976 international agreements; ended Bretton Woods system

1526 paper on coinage by Copernicus

the idea, attributed to classical/pre-Keynesian economics, that real variables (output and real interest rates) and nominal variables (money value of output and the interest rate) can be analyzed separately

commercial banks' holdings deposited in central banks

thumb | right | alt=Obverse of a Charlemagne denier (a silver coin) coined in Mainz from 812 to 814, now at the Cabinet des Médailles in Paris. | Obverse of a Charlemagne denier (a silver coin) coined in Mainz from 812 to 814, now at the Cabinet des Médailles in Paris. Metallism is the economic principle that the value of money derives from the purchasing power of the commodity upon which it is based. The currency in a metallist monetary system may be made from the commodity itself (commodity money) or it may use tokens (such as national banknotes) redeemable in that commodity. Georg Friedrich

A system using prices to measure the value of goods and services.

economic theory concerning the relationship between credit and money

equation used on monetary theory

economic action taken by a central bank

deliberate burning of money for effect

coin minted by a government, but not necessarily current within the territory of the issuing country

money issued by private intermediaries

assets easily converted into cash

heterodox theory of monetary economics, particularly money creation, often associated with the post-Keynesian school, that money is created endogenously by the banking sector, rather than exogenously by central bank lending

economic situation within free trade

16th-century English currency policy

pooling of gold reserves

British currency school economists

economic policy regarding increases to the money supply

the first specific treatises on economics, especially monetary theory