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Monetary Policy and Public Finance: An Aspect of Development 70174 Stuttgart but also key public andThere is a link between the financial development and a real growth of economies. Financial development in combination with a growth in banking stimulates the entrepreneurs action, and thus transfers resources from the traditional sector to the modern sector. This paper is divided into two sections. Section A is entitled Monetary Economics, and covers the following topics: Money in the macro economy, demand for money, supply for money, money and