Topic 1 Cursuri Money& Banking - MoneyBanking

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be if money didn't exist. We would have to resort to barter - and this means that you would have to find someone who had what you wanted, and that you would need to have something (of similar value) that they wanted. This problem of the ‗double coincidence of wants‘ means that barter economies are much less efficient than monetary economies. In the absence of a government that creates a common medium of exchange, money emerges naturally: cigarettes became the common ‗currency‘ among prisoners of war camps during recent conflicts.1 Monetary economics is a branch of economics centered on money and monetary relationships in the economy. It concentrates on the links between money and prices, output, and employment and so is a development of macroeconomics. Monetary