monetary system
National currency structure
A monetary system is the framework a country or region uses to manage its money—the currency in circulation, the institutions that control it, and the rules governing its creation and exchange.
Most modern monetary systems are based on fiat currency backed by government authority rather than physical commodities like gold.
The Bretton Woods agreement established the postwar international monetary system.
Producing official currency
- coinageInvented term or currency
- notesBrief written records
- denominationNamed religious group
- legal tenderOfficially recognized payment medium
bills · circulation · fiat · convertibility · numismatics · cashless · digital currency · cryptocurrency
Currency trading market
- exchange rateCurrency conversion value
- floating rateInterest tied to index
- fixed rateUnchanging interest percentage
- devaluationLowering of currency worth
revaluation · appreciation · depreciation · convertibility · arbitrage · dollarization
Measure of ultimate quality
- silver standardCurrency pegged to gray metal
- bimetallismDual-metal currency backing
- demonetizationWithdrawing currency's legal status
- currency reformChanging a nation's money
National currency management institution
- commercial bankDeposit and loan institution
- depositPlace for safekeeping
- withdrawalAct of taking away
- reservesResources held back
clearing · settlement · interbank · lender of last resort · bank run · capital requirements · Federal Reserve · Bank of England
Economic spending ability
- inflationSustained price level increase
- deflationSustained decrease in prices
- hyperinflationExtreme rapid price escalation
- stagflationStagnant growth meets inflation
CPI · price stability · store of value · indexation · cost of living · real value · nominal value · currency debasement
Price paid for borrowing
- quantitative easingAsset purchases to boost economy
- discount rateInterest on Fed loans
- hawkishFavoring aggressive action
- dovishFavoring conciliation over aggression
minting
Producing official currency
- coinageInvented term or currency
- notesBrief written records
- denominationNamed religious group
bills · legal tender · circulation · fiat · convertibility · numismatics · cashless · digital currency · cryptocurrency · medium of exchange
forex
Currency trading market
- exchange rateCurrency conversion value
- floating rateInterest tied to index
- fixed rateUnchanging interest percentage
devaluation · revaluation · appreciation · depreciation · convertibility · arbitrage · dollarization
gold standard
Measure of ultimate quality
- silver standardCurrency pegged to gray metal
- bimetallismDual-metal currency backing
- demonetizationWithdrawing currency's legal status
currency reform · greenback · tally sticks · cowrie shells · wampum
central bank
National currency management institution
- commercial bankDeposit and loan institution
- depositPlace for safekeeping
- withdrawalAct of taking away
reserves · clearing · settlement · interbank · lender of last resort · bank run · capital requirements · Federal Reserve · Bank of England · banking regulation
purchasing power
Economic spending ability
- inflationSustained price level increase
- deflationSustained decrease in prices
- hyperinflationExtreme rapid price escalation
stagflation · CPI · price stability · store of value · indexation · cost of living · real value · nominal value · currency debasement
interest rates
Price paid for borrowing
- quantitative easingAsset purchases to boost economy
- discount rateInterest on Fed loans
- hawkishFavoring aggressive action
- systemsecosystems, ecosystem, biological systems, transportation network, communication systems
- Byzantine coinssolidus, hexagram, gold coins, silver coins, bronze coins
- Roman coinsdenarius, as, solidus, denarii, semis
monetary systembarter
Direct goods-for-goods exchange
barter system · direct exchange · barter economy · commodity exchange · countertrade
monetary systemgift economy
Giving without explicit repayment
subsistence economy · sharing economy · autarky · self-sufficiency · cashless society