Decoding Economics: Monopoly, Fiscal, Monetary

Unlock economics terms by tracing them to Greek and Latin roots.

Economics vocabulary is easier once you see its roots. Economy itself comes from Greek oikos, 'house,' and nomos, 'law' or 'management': originally the management of a household. Monopoly combines monos, 'one,' and polein, 'to sell,' so a market with one seller; oligopoly has a few sellers. Fiscal comes from Latin fiscus, 'basket' or 'purse,' which came to mean the public treasury; fiscal policy concerns government spending and taxation.

Monetary comes from Latin moneta, 'mint' or 'coinage'; the word traces to the temple of Juno Moneta in ancient Rome, where coins were made. Monetary policy concerns money supply and interest rates. Inflation comes from inflare, 'to blow into,' as prices swell. Worked example: 'Fiscal tightening and monetary easing pulled the economy in opposite directions. ' Decoded: the government cut spending or raised taxes, while the central bank made money easier to borrow.

• 1Economy: household management (oikos + nomos).
• 2Monopoly: one seller; oligopoly: a few sellers.
• 3Fiscal concerns the treasury; monetary concerns money supply.