NationMaster - Encyclopedia: Monetary system

A monetary system secures the proper functioning of money by regulating economic agents, transaction types, and money supply. An example of Money. ... The examples and perspective in this article or section may not represent a worldwide view. ...

Monetary systems are traditionally formed by the policy decisions of individual governments and administrated as a domestic economic issue. The current trend, however, is to use international trade and investment to alter the policy and legislation of individual governments. The best recent example of this policy is the European Union's creation of the euro as a common currency for many of its individual states. Another example is China's intentional devaulation of the Renminbi against other currencies. ISO 4217 Code EUR User(s) European Union; eurozone: Austria, Belgium, Finland, France, Germany, Greece, Republic of Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain; outside eurozone: Andorra, Monaco, San Marino, Vatican City, Montenegro, Kosovo, French Guiana, RÃ©union, Saint-Pierre et Miquelon, Guadeloupe, Martinique, Mayotte. ... ISO 4217 Code CNY User(s) Mainland of the Peoples Republic of China Inflation rate 1. ...

Apart from monetary systems based on money, there do also exist systems based on "favours". One example of this is the LETS system. LETS, or Local Exchange Trading Systems, are local community trading groups where members exchange their goods and services with each other.

Results from FactBites:

European Monetary Union: Operating Monetary Policy - Finance & Development - September 1996 (3528 words)
	Stage 3 is defined as the ultimate stage of economic and monetary union wherein the currencies of the participating EU countries are irrevocably locked and replaced by a single currency, the euro.
	As a monetary control device, reserve requirements help stabilize the relationship between reserve money and broader measures of money (this is usually called the money multiplier) and increase the extent to which the demand for money responds to a change in interest rates in case of less than full remuneration of the required reserves.
	If the ECB adopts a monetary target, monetary control arguments for reserve requirements may be given some consideration, although the level of reserve requirements in the EMU could be lower than that prevailing in some of the major countries until a few years ago.

The Australian Monetary System (1269 words)
	The centerpiece of the policy framework is an inflation target, under which the Reserve Bank sets policy to achieve an inflation rate of 2-3 per cent on average, a rate sufficiently low that it does not materially affect economic decisions in the community.
	On the days when monetary policy is being changed, market operations are aimed at moving the cash rate to the new target level.
	This arrangement means that there is separation between monetary policy and the Government's debt management, with the Treasury directly responsible for the latter and the Reserve Bank responsible for the former.

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