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Monetary economics

Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good.[1] The discipline has historically prefigured, and remains integrally linked to, macroeconomics.[2] This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions[3] and international aspects.[4]

Modern analysis has attempted to provide microfoundations for the demand for money[5] and to distinguish valid nominal and real monetary relationships for micro or macro uses, including their influence on the aggregate demand for output.[6] Its methods include deriving and testing the implications of money as a substitute for other assets[7] and as based on explicit frictions.[8]

determinants and measurement of the money supply, whether narrowly, broadly, or index-aggregated, in relation to economic activity[10]

Empirical

Empirical determinants of the .

demand for money

(also called debt theory of money), concerning the relationship between credit and money.

Credit theory of money

and balance-sheet theories, which hypothesize that over-extension of credit associated with a subsequent asset-price fall generate business fluctuations through the wealth effect on net worth.[11][12]

Debt deflation

Monetary aspects studied by .[13]

central banks

The monetary/ relationship to macroeconomic stability[14]

fiscal policy

The effect of money supply growth on .

inflation

The of financial regulation and monetary policy[15]

political economy

Monetary implications of the asset-price/macroeconomic relation: the quantity theory of money,[17] monetarism,[18] and the importance and stability of the relation between the money supply and interest rates, the price level, and nominal and real output of an economy.[19]

[16]

Traditionally, research areas in monetary economics have included:

Handbook of Monetary Economics, Elsevier.

Journal of Money, Credit and Banking

Journal of Monetary Economics

Working Papers: Links to JEL classes of abstracts or downloads for Macroeconomics and Monetary Economics, including:

NBER