Money

No. 57 AUGUST 2015

This essay reflects on the subject of money in language that is devoid of theoretical considerations and technical complexities as far as possible. It addresses issues related to the emergence, existence and role of money in an economy, the functions of the main institutions involved in the monetary sector of the economy and the repercussions of its action on the sphere of economic agents. It describes the developments in payment methods and systems throughout history and outlines and characterises the main desirable functions and properties of a monetary standard. It analyses the role of money in a contemporary market economy, addressing the topics of the amount of money in circulation, the characterisation of the monetary sector of the economy and the role of the monetary authority. Finally, it covers topics related to new forms of money and perspectives for future development.