金融学（第四版）课件：The Fed,Depository Institutions,and the Money Supply Process

TheFed,DepositoryInstitutions,andtheMoneySupplyProcess

2OpenMarketOperationsOpenmarketoperationsarethebuyingandsellingofgovernmentsecuritiesbytheFedopenmarketoperationsaffectthesupplyofreservesavailabletodepositoryinstitutionsthevolumeofreservesaffectsthebankingsystem’sabilitytoextendloanstoexpandthemoneysupply3TheMoneySupplyProcessOpenMarketOperationsReservesCreditAvailabilityMoneySupplyDepositCreationInterestRatesLending4OpenMarketOperationsWhentheFedbuyssecurities,reservesofdepositoryinstitutionsriseWhentheFedsellssecurities,reservesofdepositoryinstitutionsfall5OpenMarketOperationsSupposetheFedwishestoincreasesthesupplyofreservesby$1,000thetradingdeskoftheNewYorkFedwillbuy$1,000ofTreasurysecuritiestheFedpaysforthesesecuritiesbywritingacheckthesellerswilldepositthesechecksintothebankingsystem(assumetheyuseHLTNationalBank)theFedwillcreditthebank’saccountattheFed6OpenMarketOperationsAftertheopenmarketpurchasetheFedhas$1,000moreinsecuritiesandthedealershave$1,000lessinsecuritiesthepublicgets$1,000inchecksfromtheFedthesedepositsareasststothepublicandaliabilitytotheFedAfterthechecksarereturnedtotheFedthebankhas$1,000moreinitsaccountattheFed7TheEffectofOpenMarketOperationsonReserves8DiscountLoansTheFedcontrolstheamountofrequiredreservesthatdepositoryinstitutionsmustholdIfdepositoryinstitutionscannotmeettheirrequiredreserves,theymayborrowreservesatthediscountwindowtheinterestratechargedbytheFediscalledthediscountrate9DiscountLoansChangesinthediscountlendingalsoaffectthevolumeofreservesinthebankingsystemwhentheFedmakesadiscountloan,reserveassetsincreasebytheamountoftheloantheeffectisthesameasanopenmarketpurchasewhentheloanisrepaid,reserveassetsfalltheeffectisthesameasanopenmarketsale10TheEffectofDiscountLoansontheMonetaryBase11DiscountLoansTheFedcannotcompletelycontroltheamountofborrowingfromthediscountwindowcanencourageordiscourageborrowingbyloweringorraisingthediscountratetheFedcanrefusetomakeadiscountloan12FactorsThatAffecttheReservesofDepositoryInstitutionsFactorsthatincreasereserves:OpenMarketPurchasesIncreasesinDiscountLoansFactorsthatdecreasereserves:OpenMarketSalesDecreasesinDiscountLoans13OtherFactorsthatChangeReservesOtherfactorscanaffectreservesTheFedcanrespondtochangesinreservescausedbytheseotherfactorswithoffsettingopenmarketoperations14OtherFactorsthatChangeReservesThecheck-clearingprocesscantakeafewdaysdepositsandreservesinthebankingsystemmaybetemporarilyhigherthantheyotherwisewouldbethisiscalledtheFederalReservefloattheFedcanoffsetthisbysellingsecuritiesifitwishes15PrototypeBalanceSheet

foraBankAssetsReservesLoansLiabilitiesCheckableDeposits16LoanandDepositExpansionAfterthechecksfromtheFedclear,HLTNationalbankhas$1,000innewreservesiftheFedinsiststhatHLTholdrequiredreservesequalto10%ofcheckabledeposits,theremaining90%ofreservesareexcessreserves$100ofthenewreservesarerequiredreserves$900ofthenewreservesareexcessreservesHLTwilllendthe$900inexcessreserves17LoanandDepositExpansionatHLTNationalBank18LoanandDepositExpansionHLT’sbalancesheetshowsa$900increaseinassets(theloan)anda$900increaseinliabilities(newdeposit)Thecustomerwhotookouttheloanwilllikelyspendthefundstheywillbecomeredepositedintothebankingsystem(assumeatSecondNationalBank)19TransactionsbetweenHLTNationalBankandSecondNationalBank20LoanandDepositExpansionThistransactionreducesHLT’sdepositsandliabilitiesby$900TheinitialdepositatHLTisbalancedbya$100riseinreserves(allrequired)anda$900riseinloansHLTisfullyloaneduphasnoexcessreserveslefttolend21LoanandDepositExpansionSecondNationalBankisnotfullyloaneduphas$810inexcessreservestolendiftheloanismade,thefundswilllikelybespentandthenredepositedinthebankingsystem(assumeatThirdNationalBank)22TransactionsofSecondNationalBankandThirdNationalBank23LoanandDepositExpansionAstheloansofonedepositoryinstitutionincrease,theuseoftheloanproceedsbytheborrowerleadstoadepositinflowatanotherinstitutionthisincreasestotaldepositliabilitiesandreserveassets24LoanandDepositExpansionThechangeindepositsateachdepositoryinstitutioncanberepresentedasthechangeinrequiredreservesplusthechangeinexcessreservesthechangeinrequiredreservesisequalto10%ofthedepositinflowthechangeinexcessreservesisequalto90%ofthedepositinflow25TheSimpleMultiplierModelTheprocessofcreatingmoneyandcreditfromincreasesinreserveswillendwhenallreservesbecomerequiredreservesthebankingsystemisfullyloanedup26TheSimpleMultiplierModelRequiredreserveassets(RR)areequaltotherequiredreserveratio(rD)multipliedbytheamountofdepositliabilities(D)RR=rD

DExcessreserves(ER)areequaltototalreserves(TR)minusrequiredreservesER=TR–RR27TheSimpleMultiplierModelIftotalreservesareequaltorequiredreservesTR=RR=rD

DD=TR/rDD=1/rD

TRWeshallreferto1/rDasthesimplemoneymultiplier28TheSimpleMultiplierModelForanychangeintotalreserves,thechangeindepositswillequal

D=1/rD

TRInourexample,theincreaseindepositsfromthe$1,000increaseinreserveswillbe

D=1/0.10$1,000=$10,00029TheSimpleMultiplierModelThesimplemultiplierprocessisareflectionofwhatiscalledthefractionalreservebankingsystemadepositoryinstitutionmustholdreserveassetsequaltoafractionofdepositliabilitiesThesmallertherequiredreserveratiois,thelargerwillbethesimplemoneymultiplier30TheRequiredReserveRatioandtheSimpleMoneyMultiplier31TheSimpleMultiplierModelThewholeprocesscanbeviewedasaninvertedpyramidtheoriginalinjectionbytheFedleadstoanincreaseinreserveassetsandliabilitiesandleavesbankswithexcessreservesthebanksrespondbyextendingloanstheseloansaredepositedinotherbankswhothenalsomakeloanstheprocesscontinuesuntilallbanksareloanedup32TheSimpleMultiplierModelAsaresult,theoriginalinjectionofreservescansupportamultipleexpansioninloansanddeposits33AnInvertedPyramidRepresentingtheMoneySupplyandtheMonetaryBase34TheMultipleExpansionofDepositsandLoansintheBankingSystem(InitialIncreaseinReservesof$1,000andaMultiplierof10)35TheMultiplierEffectofanIncreaseinReserves36PolicyImplicationsAgivendollarchangeinreserveswillleadtoalargerchangeinthemoneysupplyIfthemultiplierwasassimpleas1/rD,theFedcouldcontrolthemoneysupplypreciselyinreality,themultiplierismorecomplicatedandisnotundertheFed’scompletecontrol37SomeComplicatingRealitiesintheMultiplierModelInoursimplemodel,weassumedthatbanksdonotholdexcessreservesinfact,banksdochoosetoholdexcessreservestheseexcessreservesareleakagesfromtheflowofnewdepositsthiswilllowerthevolumeofloansanddepositscreatedateachstage38SomeComplicatingRealitiesintheMultiplierModelWealsoignoredthefactthatindividualswillchoosetoholdsomecurrencythismeansthatallloanproceedsmaynotbecomeredepositedinthebankingsystemthiswillalsoreducetheflowofreservesanddepositsfrombanktobank39ModifyingtheMultiplierModelTotalreservesareequaltorequiredreservesplusexcessreservesTR=RR+ERTR=rDD+ERAssumethatdepositoryinstitutionsholdexcessreserveassetsequaltoaconstantproportionofdepositliabilities(eD)where

e=ER/D40ModifyingtheMultiplierModelThismeansthatTR=rDD+eD=(rD+e)DThismeansthat,foragivenchangeintotalreserves,thechangeindepositswillbe41ModifyingtheMultiplierModelThemultiplierisnowsmallerthanbeforeThemultiplierisnotunderthecompletecontroloftheFedtheFedcannotcontrole42ModifyingtheMultiplierModelThepubliccanalsoaffectthemoneymultiplierbyitscurrency-holdingbehaviorAssumethepublicwantstoholdcurrencyequaltoaconstantproportionofitscheckabledeposits(cD)wherec=C/D43ModifyingtheMultiplierModelThus,themoneysupplyisequaltoM=D+C=D+cD=(1+c)DWedefinethemonetarybase(MB)asthesumofreservesandcurrencyinthehandsofthepublicMB=TR+CMB=(rD+e)D+cD=(rD+e+c)D44ModifyingtheMultiplierModelRearranging,wegetThemoneysupplyisequaltodepositspluscurrency45ModifyingtheMultiplierModelRearranging,weget46ModifyingtheMultiplierModelIntermsofchangesinthemoneysupplythatresultfromchangesinthemonetarybase,wegetWewillrefertothisasthemoneymultiplier47FactorsthatAffectthe

MoneyMultiplier48FactorsthatAffectthe

MoneyMultiplier49TheFed’sControlovertheMoneySupplyTheFed’scontrolofthemoneysupplyisnotcompletethepubliccontrolsc(theproportionofdepositsheldascurrency)depositoryinstitutionscontrole(theproportionofdepositsheldasexcessreserves)50SummaryofMajorPointsTheFed’sopenmarketoperationsaffectthequantityofreservesinthebankingsystemwhentheFedbuyssecurities,reservesofdepositoryinstitutionsrisewhentheFedsellssecurities,reservesofdepositoryinstitutionsfall51SummaryofMajorPointsDepositoryinstitutionsmustholdreserveassetsreservesinexcessofrequiredreservesarecalledexcessreservesWhentheFedmakesadiscountloanoraloanispaidoff,reservesareaffected52SummaryofMajorPointsForadepositoryinstitution,adepositinflowwillincreasetotaldepositliabilitiesandtotalreserveassetsadepositoryinstitutioncanadjusttotheinflowofdepositsbyexpandingitsloansand“creating”additionaldepositsequaltotheamountofexcessreservesthatresultfromthedepositinflow53SummaryofMajorPointsAstheproceedsofaloanarespent,thelendinginstitutionwilllosereservesanotherinstitutionwillgainreservesthisinstitutioncanexpandloansandcreateadditionaldepositsintheamountofex