金融学（第四版）课件：The Role of Money and Credit

TheRoleofMoneyandCredit

2TheCircularFlowofIncome

andExpenditureThecircularflowanalysisrevealsthepatternsoforderthatlinkhouseholds,firms,financialmarkets,andfinancialintermediarieswewillassumeasimplifiedeconomywherefirmsandhouseholdsmeetinthreemarketsproduct(output)marketfactor(input)marketfinancialmarket3TheCircularFlowDiagram4TheCircularFlowDiagramRealflowsofproductsandtheservicesoffactorsofproductionflowinonedirectionMoneyflowsinpaymentfortheproductsandtheuseoffactorsofproductionflowintheoppositedirection5TheCircularFlowDiagramHouseholdssupplylaborandotherfactorsofproductionmoneyflowsfromthebusinessestohouseholdsinpaymentsfortheservicesoflaborandtheotherfactorsofproductionthesepaymentsforfactorservicesarehouseholdincome6TheCircularFlowDiagramHouseholdspurchaseconsumergoodsandservicesandnewhousesfrombusinesseshouseholdsusuallydonotspendalloftheirincomeongoodsandservicesThefinancialsystemlinksthesenetlenderswithnetborrowersthenetborrowersareusuallybusinessesthatborrowfundstopurchaseinvestmentgoods7TheCircularFlowDiagramPricesintheoutput,factor,andfinancialmarketsadjusttocoordinateandbalancethesuppliesanddemandsresultingfromtheplansofhouseholdsandbusinessestoproduce,spend,borrow,andlendanychangeinonemarketwillbefeltthroughoutallmarketsintheformofpriceandquantityadjustments8TheRoleofFirmsin

theCircularFlowFirmssupplygoodsandservicestotheproductmarketFirmsdemandinvestmentgoodssuppliedbyotherfirmsfactorservicesinthefactor(input)marketfundsfromthefinancialmarket9TheRoleofHouseholdsin

theCircularFlowHouseholdsdemandgoodsandservicesintheproductmarketHouseholdssupplyfactorservicesinthefactor(input)marketfundstothefinancialsystem10TheRoleofMarketsin

theCircularFlowThevariousmarketscoordinateandbalancethesuppliesanddemandsAchangeinsupplyordemandinonemarketwillhaverepercussionsinothermarketswecannotanalyzethefinancialsystemwithoutexaminingtheothermarkets11MoneyTounderstandmoney’sroleinthefinancialsystem,itishelpfultoviewmoneyasanassetTheinterestrateisthecosttoborrowersofobtainingmoneyandthereturnonmoneytolenderstheinterestrateisarentalratetheinterestrateisthecostofcredit12TheDemandforMoneyThequantitydemandedofmoneyistheamountofmoneythatspendingunitswishtoholdataspecificinterestrate(price)holdingotherfactorsconstant,thereisaninverserelationshipbetweenthequantitydemandedofmoneyandtheinterestrateastheinterestraterises,thequantitydemandedofmoneyfallsastheinterestratefalls,thequantitydemandedofmoneyrises13TheDemandforMoneyInterestRate(Percent)QuantityofMoneyDemand14TheDemandforMoneyThedemandformoneyisprimarilydeterminedbyspendingplansandbytheneedtopayforpurchasesSpendingplansareinfluencedbyincomeThus,thedemandformoneyispositivelyrelatedtoincome15TheDemandforMoneyThedemandformoneyisalsodeterminedbyotherfactorsinflationchangesincomputerandtelecommunicationstechnologiesthataffectthepaymentsmechanismchangesintheriskandliquidityofotherfinancialinstruments16TheDemandforMoneyWhenthedemandformoneychanges,theentiredemandcurveshiftsadecreaseindemandisashifttotheleftanincreaseindemandisashifttotherightWhentheinterestratechanges,wemovealongasinglemoneydemandcurvechangeinquantitydemanded17ChangesintheQuantityDemanded

ofMoneyVersusChangesin

theDemandforMoneyInterestRate(Percent)QuantityofMoneyDemand5InterestRate(Percent)QuantityofMoneyDecreaseIncreaseDemand100311018TheSupplyofMoneyFinancialintermediariesthatissuecheckabledepositsholdreserveassetsequaltoacertainfractionofthesedepositsthesereservesmaybeheldaseithervaultcashordepositsattheFed19TheSupplyofMoneyAdepositoryinstitutionmusthavereserveassetsequaltoacertainpercentageofitsdepositliabilitiesthispercentageiscalledtherequiredreserveratioTheFedinfluencestheamountofcashassetsoutstandingandhenceavailableforreserves20TheSupplyofMoneySincetheFedcontrolstheamountoffundsavailableforreservesandsetstherequiredreserveratio,ithassignificantinfluenceonthemoneysupplytherelationshipbetweenthequantitysuppliedofmoneyandtheinterestratewillbeaverticalline21TheSupplyofMoneyQuantityofMoneyInterestRate(Percent)Supply22TheSupplyofMoneyChangesinthemoneysupplyareinitiatedbytheFediftheFedspeedsuptheprovisionofreservesorreducestherequiredreserveratio,themoneysupplycurveshiftstotherightiftheFedslowsdowntheprovisionofreservesorincreasestherequiredreserveratio,themoneysupplycurveshiftstotheleft23ChangesintheSupplyofMoneyQuantityofMoneyInterestRate(Percent)SupplyDecreaseIncrease24MoneyandInterestRatesThemoneymarketgravitatestotheequilibriuminterestrate(ie)occurswherethequantitysuppliedofmoneyisequaltothequantitydemandedofmoneyiftheinterestrate>ie,thereisanexcessquantitysuppliedofmoneytherewillbedownwardpressureontheinterestrateiftheinterestrate<ie,thereisanexcessquantitydemandedofmoneytherewillbeupwardpressureontheinterestrate25MarketEquilibriumQuantityofMoneyInterestRate(Percent)ieSupplyDemand26ChangesinMarketEquilibriumChangesinthesupplyofordemandformoneywillaffecttheinterestrateSupposethatthedemandformoneyrisestherewillbeexcessquantitydemandedattheoriginalinterestratetheinterestratewillriseuntilthemarketmovestoanewequilibrium27AnIncreaseintheDemandforMoneyQuantityofMoneyInterestRate(Percent)i’eSupplyDDieD'D'28ChangesinMarketEquilibriumSupposethatthesupplyofmoneyrisestherewillbeexcessquantitysuppliedattheoriginalinterestratetheinterestratewillfalluntilthemarketmovestoanewequilibrium29AnIncreaseintheSupplyofMoneyQuantityofMoneyInterestRate(Percent)DemandSSS'S'i’eie30ChangesintheInterestRateChangesintheinterestrateaffecttheaggregate(total)demandforgoodsandservicesafallininterestratesencouragespendingunitstoborrowmoremoneyanduseittopurchasemoregoodsandservicestheincreaseinaggregatedemandmayleadtoanincreaseinthequantityofgoodsandservicespurchasedandthepricelevel31HowMoneyMatters:AnIllustrationInterestRates,MoneySupply,andCreditFlowsChangeFederalReserveActsAggregateDemandforGoodsandServicesShiftsEconomy’sOutputandPricesRespond32HowCreditMattersInaneconomywherealargepercentageoflendingflowsfromcommercialbanksandotherdepositoryinstitutions,changesinthesupplyofmoneywillbecloselyrelatedtochangesinthesupplyofcreditthiswastypicaloftheU.S.economyuntilthelate1970sandearly1980s33HowCreditMattersSincetheearly1990s,changesinmoneyandcreditflowshavenotbeenascloselyrelatedCreditflowscomefromothersourceschangesincreditextensionbydepositoryinstitutionschangesinlendingatnondepositoryfinancialinstitutionsandothernonfinancialinstitutionsforeignsources34HowCreditMattersTotheextentthatlendingbypassesdomesticdepositoryinstitutions,thelinkagebetweenthemoneysupplyandeconomicactivitymaybeweakenedthismakesthejoboftheFedmoredifficult35Money,CreditandtheEconomyThegrowthrateofeconomicactivityismeasuredbythegrowthrateofrealgrossdomesticproduct(realGDP)theinflation-adjustedquantityoffinalgoodsandservicesproducedinaneconomyinagiventimeperiod36Money,CreditandtheEconomyMoneyandcreditflowshavealottodowithfluctuationsineconomicactivitywhenthemoneysupplyandcreditgrowthratesrisesignificantly,thegeneraltendencyisforrealGDPtoalsogrowwhenthemoneysupplyandcreditgrowthratesdropsignificantly,realGDPgrowthalsotendstofall37Money,CreditandtheEconomyThereisalsoarelationshipbetweenthegrowthrateofmoneyandcreditandtherateofinflationtheconsumerpriceindex(CPI)measuresthecostofamarketbasketofgoodsandservicesthatatypicalconsumerpurchasestherateofchangeoftheCPImeasurestheinflationrate38Money,CreditandtheEconomyWheneveraggregatedemandincreases,thereisageneraltendencyforoutputtorisefairlyquicklyandforpricestorisemoregraduallyWheneveraggregatedemandfalls,thereisageneraltendencyforoutputtofallfairlyquicklyandforpricestorespondwithalag39Money,CreditandtheEconomyNominalgrossdomesticproduct(nominalGDP)isthequantityoffinalgoodsandservicesproducedinaneconomyduringagiventimeperiodandvaluedattoday’spriceschangesinmoneyandcreditaremorecloselycorrelatedwithchangesinnominalGDPthanwithchangesinrealGDP40Money,Output,andInflationSustainedRiseinMoneyandCreditGrowthRateSustainedFallinMoneyandCreditGrowthRateIncreasesinOutput(RealandNominalGDP)DecreasesinOutput(RealandNominalGDP)IncreasesinInflationwithaLagDecreasesinInflationwithaLag41MoneyandCreditThecorrelationsamongmoneysupplygrowth,creditflows,theinflationrate,andrealGDParenotperfectthisimpliesthatchangesinthegrowthrateofthemoneysupplyorcreditarenottheonlyfactorsthatinfluenceinflationandeconomicactivity42MoneyandCreditOtherfactorscanexertapowerfulinfluenceonpricesandoutput,especiallyintheshortrunfiscalpolicyexpectationsaboutfuturemonetaryandfiscalpolicyexpectationsaboutfutureinflation43MoneyandCreditFlowsEconomistsdonotfullyagreeonthepastorcurrentroleofmoneyintheeconomyinthe1970s,theeconomicsprofessionwasdominatedbymonetaristseconomistswhobelievethatmoneymattersmorethananythingelseindeterminingtheoverallhealthoftheeconomyothereconomistsfocusoncreditflowsthattriggerchangesinspendingandothersbelievethatmoneyandcreditaretheonlytwoimportantflowsintheeconomy44SummaryofMajorPointsFirmsandhouseholdsmeetinthreeseparatemarketsfirmssupplygoodsandservicestotheproductmarket,demandinvestmentgoodssuppliedbyotherfirms,demandfactorservicesinthefactormarket,anddemandfundsfromthefinancialsystemhouseholdsdemandgoodsandservicesintheproductmarket,supplyfactorservicesinthefactormarket,andsupplyfundstothefinancialsystem45SummaryofMajorPointsTheinterestrateisthecosttoborrowersofobtainingmoneyandthereturnonmoneytolendersitisthecostofcreditthequantitydemandedofmoneyandtheinterestrateareinverselyrelated46SummaryofMajorPointsThedemandformoneyisdeterminedbythespendingplansofspendingunits,whichareusuallypositivelyrelatedtoincomeThesupplyofmoneyisstronglyinfluencedbytheFedthroughitscontroloverreservesandtherequiredreserveratio47SummaryofMajorPointsTheinteractionbetweenthesupplyofandthedemandformoneydeterminestheequilibriumquantityofmoneyandtheequilibriuminterestratetheinitialeffectofeitheranincreaseinthemoneysupplyoradecreaseinmoneydemandwillbeafallintheinterestratetheinitialeffectofeitheradecreaseinthemoneysupplyoranincreaseinmoneydemandwillbeariseintheinterestrate48SummaryofMajorPointsCreditflows(loanextensions)arealsoakeydeterminantofchangesinspendingandincomeasdepositoryinstitutionshandleadecliningshareofcredit,therelationshipbetweenthemonetaryaggregatesandeconomicactivitymaybediminished49SummaryofMajorPointsChangesinthemoneysupply,credit,andtheinterestratewillgenerallyalterth