What is 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.

What does money mean in economics?

To qualify as “money,” something must be widely accepted as a medium of exchange. The total quantity of money in the economy at any one time is called the money supply. Economists measure the money supply because it affects economic activity. What should be included in the money supply?

Why is money considered a medium of economic exchange?

money, a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed; as currency, it circulates anonymously from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth.