Monetary system Definition
A monetary system secures the proper functioning of money by regulating economic agents, transaction types, and money supply.
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.