Monetary System is the study of the total economy the national, regional or even the world economy. It is a fascinating subject that touches our daily lives. We are invariably interested in news about what is happening in the macro economy because changes in economic variables encroach upon our wellbeing. We follow developments pertaining to interest rates and inflation because these variables our mortgage payments and the purchasing power of our incomes and savings, as well as the profitability of our investment.

We are quite confident, though, that the book can also be adopted and used successfully. We believe that the book is even suited for self-study. The acquired knowledge will definitely be more delicate and lack depth compared with what can be achieved under the guidance of an experienced instructor. But it should provide an up-to-date first foundation for informed discussion of today’s national and global macroeconomic issues.

We depart from the conventional aggregate demand and aggregate supply model by using a model that is, despite its simplicity and sensitive appeal, effective an explaining empirical observations. The model is theoretically more appealing than the conventional model in that it relates the level of output to the inflation rate.

The book has a user-friendly design, featuring margin notes and definitions that emphasize important concepts. Exercises geared towards each chapter's central ideas consolidate the acquired knowledge. An extensive and innovative use of graphs facilitates access and enhances learning success.

Contents :

Unit – 1 Money
Unit – 2 Introduction to Monetary System
Unit – 3 International Monetary System
Unit – 4 International Financial System
Unit – 5 Balance of Payment