货币银行学英文版课件

Chapter2MoneyandthePaymentsSystem1Chapter2MoneyandthePaymentMoneyMoneyMoneyisanassetthatisgenerallyacceptedaspaymentforgoodsandservicesorrepaymentofdebt.2TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MoneyMoney2TheInternationalSCharacteristicsofMoney1.Ameansofpayment.2.AunitofAccount3.AStoreofValue3TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008CharacteristicsofMoney1.AmeThePaymentsSystemTypesofMoneyCommodityMoney–ThingsthathaveintrinsicvalueFiatMoney–Valuecomesfromgovernmentdecree(orfiat)4TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008ThePaymentsSystemTypesofMoThePaymentsSystem

ChecksInstructionstothebanktotakefundsfromyouraccountandtransferthosefundstothepersonorfirmwhosenameiswritteninthe“PaytotheOrderof”line.5TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008ThePaymentsSystem Checks5TheThePathofaPaperCheck6TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008ThePathofaPaperCheck6TheOtherFormsofPaymentsCreditCardsDebitCardsElectronicFundstransfersStoredValueCards7TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008OtherFormsofPaymentsCreditLiquidity

Liquidity

ameasureoftheeaseanassetcanbeturnedintoameansofpayment(Money).8TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008Liquidity Liquidity8TheInterMeasuringMoney

DifferentDefinitionsofmoneybasedupondegreeofliquidity. FederalReserveSystemdefinesmonetaryaggregates.9TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MeasuringMoney DifferentDefiMonetaryAggregatesLinktoCurrentData10TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MonetaryAggregatesLinktoCurGrowthRatesinMonetaryAggregates11TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008GrowthRatesinMonetaryAggreMoneyandInflation1990-20001960-1980M2GrowthRateandCPIInflationRate2yearslater.12TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MoneyandInflation1990-200019MeasuresofInflationFixed-weightIndex-CPIDeflator–GDPorPersonalConsumptionExpenditureDeflatorChain-weightindex–Halfwaybetweenfixed-weightandadeflator.13TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MeasuresofInflationFixed-weiTheRoleofMoneyintheMacroeconomy2.1Moneyplaysakeyroleintheperformanceoftheeconomy.Theamountofmoneyintheeconomyshouldnotbetoolittleortoomuch,butjust“right”?14TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008TheRoleofMoneyintheMacroDefinitionsofthemoneysupplyliquidityandliquidassetliquidity(流动性)Abilitytoconvertanassetintocashquicklywithlittlelossinvalue.15TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008Definitionsofthemoneysupplliquidassets-illiquidassetsAliquidassetissomethingyoucanturnintothegenerallyacceptablemediumofexchangequicklywithouttakingaloss.Cashandcheckingaccountsarethemostliquidassets16TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008liquidassets-illiquidasseThreedefinitionsofthemoneysupplyM1=Currencyoutsidebanks+demanddepositsatbanks+othercheckabledepositsatbanksandatallthriftinstitutions

+travelers’checksM2=M1+small-denominationtimedeposits

+moneymarketdepositsaccountsandsavingsdepositsatalldepositoryinstitutions

+

retailmoneymarketmutualfundsshares17TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008ThreedefinitionsofthemoneThreedefinitionsofthemoneysupplyM3=M2+large-denominationtimedepositsatalldepositoryinstitutions+

institutionalmoneymarketmutualfundsshares+bankrepurchaseagreementsandEurodollarsM0=cash（狭义货币）M1M218TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008ThreedefinitionsofthemoneyWhoDeterminestheMoneySupply?Golddoesnotdeterminethemoneysupply,becausegoldhaslittleinfluenceonit.Therefore,currencyandcheckingaccountscanbeincreasedordecreased,withoutanyrelationtogold.Doesitmakeyoudistrustthevalueofyourmoney?19TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008WhoDeterminestheMoneySupplWhoDeterminestheMoneySupply?ØMoneyisvaluableonlybecauseyoucanbuywhatyouneedwithit.ØThevalueofmoneyisdeterminedbythepricesofthethingswebuy.20TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008WhoDeterminestheMoneySupplwhoorwhatdoesdetermine

the

amountofmoney?

Ifgoldisnotthewatchdog,whoorwhatdoesdetermine

theamountofmoney?ØItiscentralbank,themonetaryauthorityinmostcountries.ØThecentralbankdoesnotdealdirectlywiththepublic.ØItisregardedasabankforbanksandresponsiblefortheexecutionofnationalmonetarypolicy.21TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008whoorwhatdoesdeterminetheIfgoldisnotthewatchdog,whoorwhatdoesdetermine

theamountofmoney?ØMostpartofcurrencyenterscirculation,whenpeopleandbusinessfirmscashchecksatbanks.ØItispublicwhoultimatelydecidestheproportionofthemoneysupplybeingintheformofcurrency.ØThecentralbankwholesalethenecessarycoinsandpapertobank.Thecentralbankisnotparticularlyconcernedwiththefractionofthemoneysupplythatisinoneformoranother,butratherthetotalamountofcheckabledepositspluscurrency.22TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008Ifgoldisnotthewatchdog,wTheImportanceofMoneyImoneyversusbarter23TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008TheImportanceofMoneyImTheImportanceofMoneyIIMoneyIIisrelatedwithfinancialinstitutions&markets.Moneycontributestheeconomicgrowthanddevelopmentbystimulatingboththesavingandinvestmentandfacilitatingthetransfersoffundsfromthesaverstotheborrowers.Becauseoftheoperationofthefinancialmarkets,savingscaneasilychangedintoinvestment,theeconomyisbetteroff.

Why？24TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008TheImportanceofMoneyIIMoneTheImportanceofMoneyIITheonlywayaneconomycangrowisbyallocatingpartofitsresourcestothecreationofnewandmoreproductivefacilities.ØAlotoffinancialinstrumentsarecreatedinthefinancialmarkets.ØThefinancialinstitutionhaveappeared.ØBoththesaver-lendersandborrower-spendersgainfromtheexistenceofmoney.Uncontrolledmoney,maycausemuchtrouble,evendisaster,thatisseriousinflation.25TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008TheImportanceofMoneyIIThe

Money,theeconomyandinflation2.6.1BankReservesandtheMoneysupplyCheckingaccountscomeintobeingwhenbanksextendcredit.Whenbankscontractcredit,checkingaccountsdisappear.Abankcanexpanditscheckingaccountsbyprovidingloansorbuyingsecurities.Butthecentralbankwouldaskbankstoholdreservesagainsttheircheckingaccountsliabilities.26TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008Money,theeconomyandinflatHowlargeshouldthemoneysupplybe?Toomuchmoneysupplycausesinflation,whiletoolittlemoneysupplybringstherecession,deflation.27TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008HowlargeshouldthemoneysupVelocity:themissinglink2.6.4Whatisinflation?Itisdefinedastoomuchmoneychasingtoofewgoods.Itreferstosituationwherepricesrisetokeepupwithincreasedproductioncosts,withtheresultthatthepurchasingpowerofmoneyfalls.Itcanalsobedefinedasgeneralincreasesinprices.Theoppositeisdeflation.28TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008Velocity:themissingliMajortypesofinflationAccordingtothedegreeofincreaseofprice,inflationcanbedividedintothefollowing:ØZeroinflationØLowinflation:Itreferstoinflationbetween1%-4%.ØModerateinflation:Thismeansinflationfluctuatingbetween5%-9%withoutsignoffurtherincreasebeyondthisrange.ØHighinflation:Thisreferstodouble-digitinflationwhichnormallymovesbetween10%-30%.ØHyperinflation:Itreferstoasituationwhereinflationoccursinhundredsofpercentoreventhousandsofpercentperyear.29TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008MajortypesofinflationAccordCausesofinflationØDemand-pullinflationØCost-pushinflationØDemandandsupplyjointlypushedinflationØStructuralinflation

warindemnity30TheInternationalSchoolofJiangxiUniversityofFinanceandEconomics,HainanWang2008CausesofinflationØD

CausesofinflationAccordingtothereasonscausinginflation,inflationcanbedividedintothefollowing:ØDemand-pullinflation:Itoccurswhenthetotaldemandforgoodsandservicesexceedstheavailablesupplyofgoodsandservicesintheshortrun.Theexcessdemand,orexcessspending,mayresultfromseveralcauses.ØCos