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Money
Theories
Money plays a vital role in the economy - you may have noticed! We all think we know what money is and what to do with it. However, what makes this money acceptable to us? What maintains the value of money, and perhaps a bit more muddling, what is money? The theories below explain all about money, and the role the Bank of England plays in the issuing of the money.
- Money - what is money? What functions does money fulfil, and what makes 'good' money?
- Liquidity - the closer to cash it is, the more liquid money is. How do we measure liquidity?
- Demand for money - what determines how much money is demanded in the economy?
- The supply of money - measuring the amount of money in the economy is more complex that it might seem at first and there are a number of different measures.
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