Chapter One: What Is Money?
Published: July 02, 2019
Studying monetary policy requires an understanding of money: what it is and what it is for. Money serves three functions: As a medium of exchange, a store of value, and a unit of account. Central banks determine how much money there is in the economy and control the money supply using the formula MV = PY.
Video Recorded: August 20, 2018
- What makes monetary policy important?
- How does monetary policy relate to politics?
- What are the cost and benefits to society of central bank independence?