Introductory

Abstract

Monetary theory is a department of general economic theory. The latter is usually divided, in these days, into micro-theory, macro-theory and growth theory. Since money is but one among many objects that have value in exchange, like cotton, one might at first suppose that the theory regarding it would fall into the micro category. The fact, however, that money enters into an exchange relation with most, or, indeed, all, other valuables, entails that macro-theory and growth theory also have a bearing on monetary theory.