saving-investment曼昆-微观经济学(课堂PPT)课件(PPT 48页).pptx

1、Copyright 2004 South-Western Saving,Investment,and the Financial System第1页，共48页。Copyright 2004 South-WesternThe Financial System The consists of the group of institutions in the economy that help to match one persons saving with another persons investment.It moves the economys scarce resources from

2、savers to borrowers.第2页，共48页。Copyright 2004 South-WesternFINANCIAL INSTITUTIONS IN THE U.S.ECONOMY The financial system is made up of financial institutions that coordinate the actions of savers and borrowers.Financial institutions can be grouped into two different categories:financial markets and f

3、inancial intermediaries.第3页，共48页。Copyright 2004 South-WesternFINANCIAL INSTITUTIONS IN THE U.S.ECONOMY Financial Markets Stock Market Bond Market Financial Intermediaries Banks Mutual Funds第4页，共48页。Copyright 2004 South-WesternFINANCIAL INSTITUTIONS IN THE U.S.ECONOMY Financial markets are the instit

4、utions through which savers can directly provide funds to borrowers.Financial intermediaries are financial institutions through which savers can indirectly provide funds to borrowers.第5页，共48页。Copyright 2004 South-WesternFinancial Markets The Bond Market A bond is a certificate of indebtedness thatsp

5、ecifies obligations of the borrower to the holder of the bond.Characteristics of a Bond Term:The length of time until the bond matures.Credit Risk:The probability that the borrower will fail to pay some of the interest or principal.Tax Treatment:The way in which the tax laws treat the interest on th

6、e bond.Municipal bonds are federal tax exempt.IOU第6页，共48页。Copyright 2004 South-WesternFinancial Markets The Stock Market Stock represents a claim to partial ownership in a firm and is therefore,a claim to the profits that the firm makes.The sale of stock to raise money is called equity financing.Com

7、pared to bonds,stocks offer both higher risk and potentially higher returns.The most important stock exchanges in the United States are the New York Stock Exchange,the American Stock Exchange,and NASDAQ.第7页，共48页。Copyright 2004 South-WesternFinancial Markets The Stock Market Most newspaper stock tabl

8、es provide the following information:Price(of a share)Volume(number of shares sold)Dividend(profits paid to stockholders)Price-earnings ratio第8页，共48页。Copyright 2004 South-WesternFinancial Intermediaries Financial intermediaries are financial institutions through which savers can indirectly provide f

9、unds to borrowers.第9页，共48页。Copyright 2004 South-WesternFinancial Intermediaries Banks take deposits from people who want to save and use the deposits to make loans to people who want to borrow.pay depositors interest on their deposits and charge borrowers slightly higher interest on their loans.第10页

10、，共48页。Copyright 2004 South-WesternFinancial Intermediaries Banks Banks help create a medium of exchange by allowing people to write checks against their deposits.A medium of exchanges is an item that people can easily use to engage in transactions.This facilitates the purchases of goods and services

11、.第11页，共48页。Copyright 2004 South-WesternFinancial Intermediaries Mutual Funds A mutual fund is an institution that sells shares to the public and uses the proceeds to buy a portfolio,of various types of stocks,bonds,or both.They allow people with small amounts of money to easily diversify.第12页，共48页。C

12、opyright 2004 South-WesternFinancial Intermediaries Other Financial Institutions Credit unions Pension funds Insurance companies Loan sharks第13页，共48页。Copyright 2004 South-WesternSAVING AND INVESTMENT IN THE NATIONAL INCOME ACCOUNTS Recall that GDP is both total income in an economy and total expendi

13、ture on the economys output of goods and services:第14页，共48页。Copyright 2004 South-WesternSome Important Identities Assume a one that does not engage in international trade:第15页，共48页。Copyright 2004 South-WesternSome Important Identities Now,subtract C and G from both sides of the equation:The left sid

14、e of the equation is the total income in the economy after paying for consumption and government purchases and is called national saving,or just saving(S).第16页，共48页。Copyright 2004 South-WesternSome Important Identities Substituting S for Y-C-G,the equation can be written as:第17页，共48页。Copyright 2004

15、South-WesternSome Important Identities National saving,or saving,is equal to:第18页，共48页。Copyright 2004 South-WesternThe Meaning of Saving and Investment National Saving National saving is the total income in the economy that remains after paying for consumption and government purchases.Private Saving

16、 Private saving is the amount of income that households have left after paying their taxes and paying for their consumption.第19页，共48页。Copyright 2004 South-WesternThe Meaning of Saving and Investment Public Saving Public saving is the amount of tax revenue that the government has left after paying fo

17、r its spending.第20页，共48页。Copyright 2004 South-WesternThe Meaning of Saving and Investment Surplus and Deficit If T G,the government runs a budget surplus because it receives more money than it spends.The surplus of T-G represents public saving.If G T,the government runs a budget deficit because it s

18、pends more money than it receives in tax revenue.第21页，共48页。Copyright 2004 South-WesternThe Meaning of Saving and Investment For the economy as a whole,saving must be equal to investment.第22页，共48页。Copyright 2004 South-WesternTHE MARKET FOR LOANABLE FUNDS Financial markets coordinate the economys savi

19、ng and investment in the 第23页，共48页。Copyright 2004 South-WesternTHE MARKET FOR LOANABLE FUNDS The market for loanable funds is the market in which those who want to save supply funds and those who want to borrow to invest demand funds.第24页，共48页。Copyright 2004 South-WesternTHE MARKET FOR LOANABLE FUND

20、S refers to all income that people have chosen to save and lend out,rather than use for their own consumption.第25页，共48页。Copyright 2004 South-WesternSupply and Demand for Loanable Funds The supply of loanable funds comes from people who have extra income they want to save and lend out.The demand for

21、loanable funds comes from households and firms that wish to borrow to make investments.第26页，共48页。Copyright 2004 South-WesternSupply and Demand for Loanable Funds The interest rate is the price of the loan.It represents the amount that borrowers pay for loans and the amount that lenders receive on th

22、eir saving.The interest rate in the market for loanable funds is the real interest rate.第27页，共48页。Copyright 2004 South-WesternSupply and Demand for Loanable Funds Financial markets work much like other markets in the economy.The equilibrium of the supply and demand for loanable funds determines the

23、real interest rate.第28页，共48页。Figure 1 The Market for Loanable FundsLoanable Funds(in billions of dollars)0InterestRateSupplyDemand5%$1,200Copyright2004 South-Western第29页，共48页。Copyright 2004 South-WesternSupply and Demand for Loanable Funds Government Policies That Affect Saving and Investment Taxes

24、and saving Taxes and investment Government budget deficits第30页，共48页。Copyright 2004 South-WesternPolicy 1:Saving Incentives Taxes on interest income substantially reduce the future payoff from current saving and,as a result,reduce the incentive to save.第31页，共48页。Copyright 2004 South-WesternPolicy 1:S

25、aving Incentives A tax decrease increases the incentive for households to save at any given interest rate.The supply of loanable funds curve shifts to the right.The equilibrium interest rate decreases.The quantity demanded for loanable funds increases.第32页，共48页。Figure 2 An Increase in the Supply of

26、Loanable FundsLoanable Funds(in billions of dollars)0InterestRateSupply,S1S22.whichreduces theequilibriuminterest rate.3.and raises the equilibriumquantity of loanable funds.Demand1.Tax incentives forsaving increase thesupply of loanablefunds.5%$1,2004%$1,600Copyright2004 South-Western第33页，共48页。Copy

27、right 2004 South-WesternPolicy 1:Saving Incentives If a change in tax law encourages greater saving,the result will be lower interest rates and greater investment.第34页，共48页。Copyright 2004 South-WesternPolicy 2:Investment Incentives An investment tax credit increases the incentive to borrow.Increases

28、 the demand for loanable funds.Shifts the demand curve to the right.Results in a higher interest rate and a greater quantity saved.第35页，共48页。Copyright 2004 South-WesternPolicy 2:Investment Incentives If a change in tax laws encourages greater investment,the result will be higher interest rates and g

29、reater saving.第36页，共48页。Figure 3 An Increase in the Demand for Loanable FundsLoanable Funds(in billions of dollars)0InterestRate1.An investmenttax creditincreases thedemand for loanable funds.2.whichraises theequilibriuminterest rate.3.and raises the equilibriumquantity of loanable funds.SupplyDeman

30、d,D1 D25%$1,2006%$1,400Copyright2004 South-Western第37页，共48页。Copyright 2004 South-WesternPolicy 3:Government Budget Deficits and Surpluses When the government spends more than it receives in tax revenues,the short fall is called the budget deficit.The accumulation of past budget deficits is called th

31、e government debt.第38页，共48页。Copyright 2004 South-WesternPolicy 3:Government Budget Deficits and Surpluses Government borrowing to finance its budget deficit reduces the supply of loanable funds available to finance investment by households and firms.This fall in investment is referred to as crowding

32、 out.The deficit borrowing crowds out private borrowers who are trying to finance investments.第39页，共48页。Copyright 2004 South-WesternPolicy 3:Government Budget Deficits and Surpluses A budget deficit decreases the supply of loanable funds.Shifts the supply curve to the left.Increases the equilibrium

33、interest rate.Reduces the equilibrium quantity of loanable funds.第40页，共48页。Figure 4:The Effect of a Government Budget DeficitLoanable Funds(in billions of dollars)0InterestRate3.and reduces the equilibriumquantity of loanable funds.S22.whichraises theequilibriuminterest rate.Supply,S1Demand$1,2005%$

34、8006%1.A budget deficitdecreases thesupply of loanablefunds.Copyright2004 South-Western第41页，共48页。Copyright 2004 South-WesternPolicy 3:Government Budget Deficits and Surpluses When government reduces national saving by running a deficit,the interest rate rises and investment falls.第42页，共48页。Copyright

35、 2004 South-WesternPolicy 3:Government Budget Deficits and Surpluses A budget surplus increases the supply of loanable funds,reduces the interest rate,and stimulates investment.第43页，共48页。Figure 5 The U.S.Government DebtPercentof GDP17901810183018501870189019101930195019701990RevolutionaryWar2010Civi

36、lWarWorld War IWorld War II020406080100120Copyright2004 South-Western第44页，共48页。Copyright 2004 South-WesternSummary The U.S.financial system is made up of financial institutions such as the bond market,the stock market,banks,and mutual funds.All these institutions act to direct the resources of house

37、holds who want to save some of their income into the hands of households and firms who want to borrow.第45页，共48页。Copyright 2004 South-WesternSummary National income accounting identities reveal some important relationships among macroeconomic variables.In particular,in a closed economy,national savin

38、g must equal investment.Financial institutions attempt to match one persons saving with another persons investment.第46页，共48页。Copyright 2004 South-WesternSummary The interest rate is determined by the supply and demand for loanable funds.The supply of loanable funds comes from households who want to

39、save some of their income.The demand for loanable funds comes from households and firms who want to borrow for investment.第47页，共48页。Copyright 2004 South-WesternSummary National saving equals private saving plus public saving.A government budget deficit represents negative public saving and,therefore,reduces national saving and the supply of loanable funds.When a government budget deficit crowds out investment,it reduces the growth of productivity and GDP.第48页，共48页。