Short answers, pulled from the story.
Monetary economics is the branch of economics that studies the nature, role, and impact of money and monetary institutions. It examines money's core functions as a medium of exchange, a store of value, and a unit of account, and investigates monetary policy, inflation, financial regulation, and the relationship between money supply and economic output.
The Price Revolution was a period of dramatic inflation lasting from the late 15th century to the early 17th century, caused by the importation of gold from the New World, primarily by Spain. It prompted the first serious intellectual engagement with monetary theory in Europe and led directly to the publication of the earliest modern texts on monetary economics.
In Money and Trade Considered, published in 1705 in Scotland, John Law argued that metal-based money had failed over the previous hundred and fifty years and proposed replacing it with a land bank system issuing paper money backed by the value of real estate. His bank was implemented but collapsed when a speculative bubble burst into extreme inflation.
Della Moneta, published by Ferdinando Galiani in 1751, is regarded as arguably the first modern text on economic theory. It examined the value, origin, and regulation of money, and analyzed the possible causes of fluctuations in money's value, appearing twenty-five years before Adam Smith's The Wealth of Nations.
The price-specie flow mechanism, articulated by David Hume in Of the Balance of Trade in 1752, holds that any excess or shortage of money in an economy will automatically increase or decrease demand until equilibrium is restored. Hume argued this made worries about trade imbalances creating lasting surpluses or shortages of money unnecessary.
During the 7th through 12th centuries, Muslim economists, merchants, and traders introduced some of the earliest known uses of credit, cheques, promissory notes, savings accounts, transactional accounts, exchange rates, and banking institutions for loans and deposits. These developed within a monetary economy built on the circulation of the dinar, a stable high-value currency.