Monetary Economics

1. Historical Developments in Monetary Economics
   1. Evolution of Monetary Theory
      1. Origin and early uses of money
         1. Barter system and limitations
         2. Emergence of commodity money
         3. Role of precious metals and coinage
      2. Classical monetary theory
         1. Quantity Theory of Money
         2. Classical dichotomy
         3. Say's Law and its implications for money
      3. Keynesian revolution
         1. Liquidity preference theory
         2. Keynesian response to classical theory
         3. Role of monetary policy in the Keynesian framework
      4. Monetarist school
         1. Contributions of Milton Friedman
         2. Importance of money supply in controlling inflation
         3. Critique of the Phillips curve
      5. New classical and real business cycle theories
         1. Rational expectations hypothesis
         2. Implications for monetary policy effectiveness
   2. Gold Standard
      1. Definition and characteristics
         1. Fixed exchange rates based on gold reserves
         2. Gold convertibility
      2. Historical context and implementation
         1. Adoption across major economies in the 19th century
         2. Impact on international trade and investment
      3. Advantages and criticisms
         1. Stability of value and inflation control
         2. Constraints on monetary policy
         3. Susceptibility to shocks and deflationary pressures
      4. Demise and transition
         1. Impact of World War I and Great Depression
         2. Shift towards Bretton Woods system
   3. Bretton Woods System
      1. Establishment and framework
         1. Post-World War II economic rebuilding
         2. Fixed exchange rates with adjustable parities
         3. Role of International Monetary Fund (IMF) and World Bank
      2. Mechanisms and functioning
         1. US dollar as the central reserve currency
         2. Gold exchange standard
         3. Balance of payments adjustments
      3. Challenges and collapse
         1. Speculative attacks and currency crises
         2. Declining US gold reserves
         3. Nixon's suspension of gold convertibility in 1971
         4. Transition to floating exchange rate systems
   4. Fiat Money
      1. Transition from commodity money to fiat currency
         1. Decline of metallic standards
         2. Legal tender laws and government backing
      2. Characteristics and implications
         1. Fiat money's lack of intrinsic value
         2. Flexibility in monetary policy management
         3. Risk of hyperinflation
      3. Historical examples and adoption
         1. Post-Bretton Woods developments
         2. Adoption of fiat money in various economies
      4. Impact on global monetary systems
         1. Expansion of central banking roles
         2. Influence on international trade and finance policy
         3. Modern challenges in maintaining confidence and stability