经济学专业英语教程（精编版）（第二版）课件：Fiscal and Monetary Policy

《经济学专业英语教程

（精编版）（第二版）》

Text:FiscalandMonetaryPolicy

（财政政策与货币政策）1.Keywords2.Stabilizationpolicy3.Fiscalpolicy4.Monetarypolicy5.QuestionsinsufficientdemandplannedspendingstabilizationpolicyexpansionarypolicypotentialoutputexpansionarygapcontractionarypolicyfiscalpolicymonetarypolicygovernmentpurchasesfullemploymentmilitaryspendingtransferpaymentsdisposableincometaxcutcapitalformationbudgetdeficittaxcollectionscapitalgoodslegislativeprocessnationaldefenseautomaticstabilizertaxableincomeTheGreatDepressiongovernmentsecuritiesopen-marketoperationsgovernmentbondscommercialbanksfinancialinstitutiondiscountwindowday-to-dayfluctuationdiscountratelegalreserverequirements1.Keywords2.1Definitionofstabilizationpolicy2.2Expansionaryandcontractionarypolicy2.StabilizationpolicyPoliciesthatareusedtoaffectplannedaggregateexpenditure,withtheobjectiveofeliminatingoutputgaps,arecalledstabilizationpolicies.Thetwomajortoolsofstabilizationpolicyarefiscalpolicyandmonetarypolicy.2.1DefinitionofstabilizationpolicyPolicyactionsintendedtoincreaseplannedspendingandoutputarecalledexpansionarypolicies;expansionarypolicyactionsarenormallytakenwhentheeconomyisinrecession.Contractionarypoliciesarepolicyactionsintendedtoreduceplannedspendingandoutput.2.2Expansionaryandcontractionarypolicy3.1Definitionoffiscalpolicy3.2Compositionoffiscalpolicy3.3Fiscalpolicyasastabilizationtool:Threequalifications3.4Reasonsforfiscalpolicyasastabilizingforce3.FiscalpolicyFiscalpolicyreferstodecisionsaboutthegovernment’sbudget—howmuchthegovernmentspendsandhowmuchtaxrevenueitcollects.3.1Definitionoffiscalpolicy3.2.1Governmentpurchasesandplannedspending3.2.2Taxes,transfers,andaggregatespending3.2CompositionoffiscalpolicyGovernmentpurchasesofgoodsandservices,beingacomponentofplannedaggregateexpenditure,directlyaffecttotalspending.Ifoutputgapsarecausedbytoomuchortoolittletotalspending,thenthegovernmentcanhelptoguidetheeconomytowardfullemploymentbychangingitsownlevelofspending.3.2.1GovernmentpurchasesandplannedspendingTransferpaymentsarepaymentsmadebythegovernmenttothepublic,forwhichnocurrentgoodsorservicesarereceived.Examplesoftransferpaymentsareunemploymentinsurancebenefits,SocialSecuritybenefits,andincomesupportpaymentstofarmers.Changesintheleveloftaxesortransferscanbeusedtoaffectplannedaggregateexpenditureandthuseliminateoutputgaps.3.2.2Taxes,transfers,andaggregatespending3.3.1Fiscalpolicyandthesupplyside3.3.2Theproblemofdeficits3.3.3Therelativeinflexibilityoffiscalpolicy3.3Fiscalpolicyasastabilizationtool:ThreequalificationsFiscalpolicyaffectsbothplannedspendingandpotentialoutput.Thus,inmakingfiscalpolicy,governmentofficialsshouldtakeintoaccountnotonlytheneedtostabilizeplannedaggregateexpenditurebutalsothelikelyeffectsofgovernmentspending,taxes,andtransfersontheeconomy’sproductivecapacity.3.3.1FiscalpolicyandthesupplysideThegovernment’sbudgetdeficitistheexcessofgovernmentspendingovertaxcollections.Sustainedgovernmentdeficitscanbeharmfulbecausetheyreducenationalsaving,whichinturnreducesinvestmentinnewcapitalgoods—animportantsourceoflongruneconomicgrowth.3.3.2TheproblemofdeficitsInreality,changesingovernmentspendingortaxesmustusuallygothroughalengthylegislativeprocess,whichreducestheabilityoffiscalpolicytorespondinatimelywaytoeconomicconditions.Anotherfactorthatlimitstheflexibilityoffiscalpolicyisthatfiscalpolicymakershavemanyotherobjectivesbesidesstabilizingaggregatespending,fromensuringanadequatenationaldefensetoprovidingincomesupporttothepoor.3.3.3TherelativeinflexibilityoffiscalpolicyThefirstisthepresenceofautomaticstabilizers,provisionsinthelawthatimplyautomaticincreasesingovernmentspendingordecreasesintaxeswhenrealoutputdeclines.Taxesandtransferpaymentsalsorespondautomaticallytooutputgaps.Theseautomaticchangesingovernmentspendingandtaxcollectionshelptoincreaseplannedspendingduringrecessionsandreduceitduringexpansions,withoutthedelaysinherentinthelegislativeprocess.Althoughfiscalpolicymaybedifficulttochangequickly,itmaystillbeusefulfordealingwithprolongedepisodesofrecession.3.4Reasonsforfiscalpolicyasastabilizingforce4.1Definitionofmonetarypolicy4.2Compositionofmonetarypolicy4.MonetarypolicyMonetarypolicyreferstodecisionsaboutthesizeofthemoneysupply.4.1Definitionofmonetarypolicy4.2.1Open-marketoperations4.2.2Discount-ratepolicy4.2.3Changingreserverequirements4.2CompositionofmonetarypolicyBysellingorbuyinggovernmentsecuritiesintheopenmarket,thecentralbankcanlowerorraisebankreserves.Theseso-calledopen-marketoperationsareacentralbank’smostimportantstabilizinginstrument.Thebondssoldtotheopenmarket.Thisincludesdealersingovernmentbonds,whothenresellthemtocommercialbanks,bigcorporations,otherfinancialinstitutions,andindividuals.4.2.1Open-marketoperationsWhencommercialbanksareshortofreserves,theyareallowedtoborrowfromthecentralbank.Theseloansarecalledborrowedreserves.Whenborrowedreservesaregrowing,thebanksareborrowingfromthecentralbank,therebyincreasingtotalbankreserves(borrowedplusunborrowedreserves).Conversely,adropinborrowedreservespromotesacontractionintotalbankreserves.Sometimes,thecentralbankmayraiseorlowerthediscountrate,whichistheinterestratechargedonbankborrowingsfromthecentralbank.Formanyyears,thediscountratewasthebellwetherofmonetarypolicy.4.2.2Discount-ratepolicyReserverequirementshelpthecentralbankconductitsopen-marketoperationsbyensuringastabledemandforreserves.Bysetting