The main methods of studying money

There are two main methods to study money: equilibrium analysis and non-equilibrium analysis.

Equilibrium analysis is the most commonly used research method, which holds that various variables will reach an equilibrium in a certain state. For example, the theory of supply and demand holds that there are supply curves and demand curves, which will reach equilibrium under a certain quantity and price.

Since alfred marshall introduced graphics into economic argumentation, equilibrium analysis has always occupied a dominant position in western economics.

Related information introduction:

Money is a special commodity that acts as a universal equivalent. Under the condition of commodity production, money, as the representative of commodity value, directly reflects social labor, can show the value of all other commodities, and can buy all other commodities.

From the function of money, the positive effects of money are as follows: as a medium of exchange, money reduces the exchange cost of products and improves the exchange efficiency; Reduce the cost of value measurement and comparison and provide convenience for product exchange; As a form of value storage, money provides the most liquid form of value storage and enriches the means of storage.