29monetary-system-曼昆-微观经济学(1)PPT课件.pptx

1、10 MONEY AND PRICES IN THE LONG RUNCopyright 2004 South-WesternThe Monetary SystemCopyright 2004 South-WesternTHE MEANING OF MONEY Money is the set of assets in an economy that people regularly use to buy goods and services from other people.Copyright 2004 South-WesternThe Functions of Money Money h

2、as three functions in the economy: Medium of exchange Unit of account Store of valueCopyright 2004 South-WesternThe Functions of Money Medium of Exchange A medium of exchange is an item that buyers give to sellers when they want to purchase goods and services. A medium of exchange is anything that i

3、s readily acceptable as payment.Copyright 2004 South-WesternThe Functions of Money Unit of Account A unit of account is the yardstick people use to post prices and record debts. Store of Value A store of value is an item that people can use to transfer purchasing power from the present to the future

4、.Copyright 2004 South-WesternThe Functions of Money Liquidity Liquidity is the ease with which an asset can be converted into the economys medium of exchange.Copyright 2004 South-WesternThe Kinds of Money Commodity money takes the form of a commodity with intrinsic value. Examples: Gold, silver, cig

5、arettes. Fiat money is used as money because of government decree. It does not have intrinsic value. Examples: Coins, currency, check deposits.Copyright 2004 South-WesternMoney in the U.S. Economy Currency is the paper bills and coins in the hands of the public. Demand deposits are balances in bank

6、accounts that depositors can access on demand by writing a check.Figure 1 Money in the U.S. EconomyCopyright2003 Southwestern/Thomson LearningBillionsof Dollars Currency($580 billion) Demand deposits Travelers checks Other checkable deposits ($599 billion) Everything in M1($1,179 billion) Savings de

7、posits Small time deposits Money market mutual funds A few minor categories ($4,276 billion)0M1$1,179M2$5,455Copyright 2004 South-WesternCASE STUDY: Where Is All The Currency? In 2001 there was about $580 billion of U.S. currency outstanding. That is $2,734 in currency per adult. Who is holding all

8、this currency? Currency held abroad Currency held by illegal entitiesCopyright 2004 South-WesternTHE FEDERAL RESERVE SYSTEM The Federal Reserve (Fed) serves as the nations central bank. It is designed to oversee the banking system. It regulates the quantity of money in the economy.Copyright 2004 Sou

9、th-WesternTHE FEDERAL RESERVE SYSTEM The Fed was created in 1914 after a series of bank failures convinced Congress that the United States needed a central bank to ensure the health of the nations banking system.Copyright 2004 South-WesternTHE FEDERAL RESERVE SYSTEM The Structure of the Federal Rese

10、rve System: The primary elements in the Federal Reserve System are: 1) The Board of Governors 2) The Regional Federal Reserve Banks 3) The Federal Open Market CommitteeCopyright 2004 South-WesternThe Feds Organization The Fed is run by a Board of Governors, which has seven members appointed by the p

11、resident and confirmed by the Senate. Among the seven members, the most important is the chairman. The chairman directs the Fed staff, presides over board meetings, and testifies about Fed policy in front of Congressional Committees.Copyright 2004 South-WesternThe Feds Organization The Board of Gove

12、rnors Seven members Appointed by the president Confirmed by the Senate Serve staggered 14-year terms so that one comes vacant every two years. President appoints a member as chairman to serve a four-year term.Copyright 2004 South-WesternThe Feds Organization The Federal Reserve System is made up of

13、the Federal Reserve Board in Washington, D.C., and twelve regional Federal Reserve Banks.Copyright 2004 South-WesternThe Feds Organization The Federal Reserve Banks Twelve district banks Nine directors Three appointed by the Board of Governors. Six are elected by the commercial banks in the district

14、. The directors appoint the district president, which is approved by the Board of Governors.The Federal Reserve SystemCopyright2003 Southwestern/Thomson LearningCopyright 2004 South-WesternThe Feds Organization The Federal Reserve Banks The New York Fed implements some of the Feds most important pol

15、icy decisions.Copyright 2004 South-WesternThe Feds Organization The Federal Open Market Committee (FOMC) Serves as the main policy-making organ of the Federal Reserve System. Meets approximately every six weeks to review the economy.Copyright 2004 South-WesternThe Feds Organization The Federal Open

16、Market Committee (FOMC) is made up of the following voting members: The chairman and the other six members of the Board of Governors. The president of the Federal Reserve Bank of New York. The presidents of the other regional Federal Reserve banks (four vote on a yearly rotating basis).Copyright 200

17、4 South-WesternThe Feds Organization Monetary policy is conducted by the Federal Open Market Committee. Monetary policy is the setting of the money supply by policymakers in the central bank The money supply refers to the quantity of money available in the economy.Copyright 2004 South-WesternThe Fed

18、eral Open Market Committee Three Primary Functions of the Fed Regulates banks to ensure they follow federal laws intended to promote safe and sound banking practices. Acts as a bankers bank, making loans to banks and as a lender of last resort. Conducts monetary policy by controlling the money suppl

19、y.Copyright 2004 South-WesternThe Federal Open Market Committee Open-Market Operations The money supply is the quantity of money available in the economy. The primary way in which the Fed changes the money supply is through open-market operations. The Fed purchases and sells U.S. government bonds.Co

20、pyright 2004 South-WesternThe Federal Open Market Committee Open-Market Operations To increase the money supply, the Fed buys government bonds from the public. To decrease the money supply, the Fed sells government bonds to the public.Copyright 2004 South-WesternBANKS AND THE MONEY SUPPLY Banks can

21、influence the quantity of demand deposits in the economy and the money supply.Copyright 2004 South-WesternBANKS AND THE MONEY SUPPLY Reserves are deposits that banks have received but have not loaned out. In a fractional-reserve banking system, banks hold a fraction of the money deposited as reserve

22、s and lend out the rest.Copyright 2004 South-WesternBANKS AND THE MONEY SUPPLY Reserve Ratio The reserve ratio is the fraction of deposits that banks hold as reserves.Copyright 2004 South-WesternMoney Creation with Fractional-Reserve Banking When a bank makes a loan from its reserves, the money supp

23、ly increases. The money supply is affected by the amount deposited in banks and the amount that banks loan. Deposits into a bank are recorded as both assets and liabilities. The fraction of total deposits that a bank has to keep as reserves is called the reserve ratio. Loans become an asset to the b

24、ank.Copyright 2004 South-WesternMoney Creation with Fractional-Reserve Banking This T-Account shows a bank that accepts deposits, keeps a portion as reserves, and lends out the rest. It assumes a reserve ratio of 10%.AssetsLiabilitiesFirst National BankReserves$10.00Loans$90.00Deposits$100.00Total A

25、ssets$100.00Total Liabilities$100.00Copyright 2004 South-WesternMoney Creation with Fractional-Reserve Banking When one bank loans money, that money is generally deposited into another bank. This creates more deposits and more reserves to be lent out. When a bank makes a loan from its reserves, the

26、money supply increases.Copyright 2004 South-WesternThe Money Multiplier How much money is eventually created in this economy?Copyright 2004 South-WesternThe Money Multiplier The money multiplier is the amount of money the banking system generates with each dollar of reserves.Copyright 2004 South-Wes

27、ternThe Money Multiplier AssetsLiabilitiesFirst National BankReserves$10.00Loans$90.00Deposits$100.00Total Assets$100.00Total Liabilities$100.00AssetsLiabilitiesSecond National BankReserves$9.00Loans$81.00Deposits$90.00Total Assets$90.00Total Liabilities$90.00Money Supply = $190.00!Copyright 2004 So

28、uth-WesternThe Money Multiplier The money multiplier is the reciprocal of the reserve ratio:M = 1/R With a reserve requirement, R = 20% or 1/5, The multiplier is 5.Copyright 2004 South-WesternThe Feds Tools of Monetary Control The Fed has three tools in its monetary toolbox: Open-market operations C

29、hanging the reserve requirement Changing the discount rateCopyright 2004 South-WesternThe Feds Tools of Monetary Control Open-Market Operations The Fed conducts open-market operations when it buys government bonds from or sells government bonds to the public: When the Fed buys government bonds, the

30、money supply increases. The money supply decreases when the Fed sells government bonds.Copyright 2004 South-WesternThe Feds Tools of Monetary Control Reserve Requirements The Fed also influences the money supply with reserve requirements. Reserve requirements are regulations on the minimum amount of

31、 reserves that banks must hold against deposits.Copyright 2004 South-WesternThe Feds Tools of Monetary Control Changing the Reserve Requirement The reserve requirement is the amount (%) of a banks total reserves that may not be loaned out. Increasing the reserve requirement decreases the money suppl

32、y. Decreasing the reserve requirement increases the money supply.Copyright 2004 South-WesternThe Feds Tools of Monetary Control Changing the Discount Rate The discount rate is the interest rate the Fed charges banks for loans. Increasing the discount rate decreases the money supply. Decreasing the d

33、iscount rate increases the money supply.Copyright 2004 South-WesternProblems in Controlling the Money Supply The Feds control of the money supply is not precise. The Fed must wrestle with two problems that arise due to fractional-reserve banking. The Fed does not control the amount of money that hou

34、seholds choose to hold as deposits in banks. The Fed does not control the amount of money that bankers choose to lend.Copyright 2004 South-WesternSummary The term money refers to assets that people regularly use to buy goods and services. Money serves three functions in an economy: as a medium of ex

35、change, a unit of account, and a store of value. Commodity money is money that has intrinsic value. Fiat money is money without intrinsic value.Copyright 2004 South-WesternSummary The Federal Reserve, the central bank of the United States, regulates the U.S. monetary system. It controls the money su

36、pply through open-market operations or by changing reserve requirements or the discount rate. p 经常不断地学习,你就什么都知道。你知道得越多,你就越有力量p Study Constantly, And You Will Know Everything. The More You Know, The More Powerful You Will Be学习总结结束语当你尽了自己的最大努力时，失败也是伟大的，所以不要放弃，坚持就是正确的。When You Do Your Best, Failure Is Great, So DonT Give Up, Stick To The End演讲人：XXXXXX 时 间：XX年XX月XX日