1、Monetary PolicyChapter 3Lead-inLanguage NotesKey PointsFollow-up Tasks3.13.33.23.4CONTENTSExtended Tasks3.53.1Lead-inThis chapter will first of all introduce the goalgoal of the monetary policymonetary policy.Then it will explain the process of the monetary policy formulationformulation.Finally,it w
2、ill list the various toolstools of the monetary policy.￥$The goals of monetary policy are sustainable economic growth,full employment,stable prices,and a satisfactory external balance.Sustainable economic growth is determined by the growth and productivity of the labor force and capital stock.Polici
3、es that achieve full employment and a noninflationary environment help to achieve maximum sustainable growth.Money Policy3.2 Key Points3.2.1 Goal of the Monetary Policy3.2 Key Points3.2.2 Process of the Monetary Policy FormulationThe basic approach is to use various statistical methods and models,ju
4、dgment based on historical experience,and incoming data on the full range of factors comprising and determining aggregate demand and aggregate supply to develop a forecast for the variables of major concern such as real gross domestic product(GDP),inflation,the unemployment rate,and exchange rates.T
5、he data that are used include information about retail sales,industrial production,consumer confidence,business capital spending plans,wages,personal income,profits,and the external balance of payments.3.2 Key Points3.2.3 Tools of the Monetary PolicyOpen Market Operations1Discount Policy2Reserve Req
6、uirements3 This entails managing the quantity of money in circulation through the buying and selling of various financial instruments,such as treasury bills,company bonds,or foreign currencies,in exchange for money on deposit at the central bank.The discount window is an instrument of monetary polic
7、y(usually controlled by central banks)that allows eligible institutions to borrow money from the central bank,usually on a short-term basis,to meet temporary shortages of liquidity caused by internal or external disruptions.The required reserve ratio is sometimes used as a tool in monetary policy,in
8、fluencing the countrys borrowing and interest rates by changing the amount of funds available for banks to make loans with.contractionary kntrknr 收缩的，收紧的discount dskant贴现equivalent kwvlnt 相等的东西，等量expansionary kspnnri 扩张的float flt 浮动fluctuation flkten 波动liability lablti 责任，债务liquidity lkwdti 流动性3.3 L
9、anguage NotesI.Wordsmonetarism mntrzm 货币主义offset fset 抵消statistical sttstkl 统计的shrink rk 使缩水sustainable sstenbl 可持续的a basket of foreign currencies aggregate demandaggregate supplycapital stock credit facility defensive open market operation discount window dynamic open market operation federal funds
10、 Federal Open Market Committee(FOMC)fiscal policy gross domestic product(GDP)monetary authority 3.3 Language NotesII.Phrases monetary basemonetary policy money supply multiplier open market operations policy instruments primary credit prime rate secondary credit standing lending facilitystranded ass
11、et Treasury deposits vault cash the U.S.Treasury unit of account1.Monetary policy is the process during which the monetary authority of a country,like the central bank or currency board,controls the supply of money.2.The changes in fiscal and monetary policies that lead to changes in aggregate deman
12、d interact,in turn,with aggregate supply to produce changes in prices,real output,and employment.3.The basic approach is to use various statistical methods and models,judgment based on historical experience,and incoming data on the full range of factors comprising and determining aggregate demand an
13、d aggregate supply to develop a forecast for the variables of major concern such as real gross domestic product(GDP),inflation,the unemployment rate,and exchange rates.4.The data that are used include information about retail sales,industrial production,consumer confidence,business capital spending
14、plans,wages,personal income,profits,and the external balance of payments.5.The Fed conducts most of its open market operations in Treasury securities because the market for these securities is the most liquid and has the largest trading volume.3.3 Language NotesIII.Sentences 3.4 Follow-up TasksI.Mat
15、chingDirections:Match the English words and phrasesEnglish words and phrases in the leftleft column with the proper ChineseChinese equivalents in the rightright column.()1.availability of fundsA.定期存单()2.a certificate of deposit B.充分就业()3.discount policyC.货币委员会()4.federal funds rateD.劳动力()5.fiscal an
16、d monetary policies E.利率()6.full employmentF.价格稳定()7.interest rateG.资金可用性()8.labor force H.联邦基金利率()9.currency board I.贴现政策()10.price stability J.财政和货币政策3.4 Follow-up TasksII.Multiple ChoicesDirections:Choose the best answer for each of the following statements for questions.1.Macroeconomic policy in
17、cludes the following EXCEPT _.()A.monetary policyB.government spending policyC.government tax policyD.educational policy2.Which of the following does NOT contribute to the sustainable development of the economy?()A.a productive workforce B.a decreasing capitalC.a low unemployment D.a low inflation3.
18、4 Follow-up TasksII.Multiple ChoicesDirections:Choose the best answer for each of the following statements for questions.3.Which of the following facts makes open market operations the most important monetary tool EXCEPT _?()A.open market operations play a major role in changing interest ratesB.open
19、 market operations play a major role in changing the monetary baseC.open market operations play a major role in changing the money supplyD.open market operations play a major role in changing the national history4.The Feds discount loans to banks include the following EXCEPT _.()A.primary credit B.s
20、econdary creditC.tertiary credit D.seasonal credit3.4 Follow-up TasksII.Multiple ChoicesDirections:Choose the best answer for each of the following statements for questions.5.An increase in reserve requirements will lead to the following consequences EXCEPT _.()A.less depositsB.more supply of moneyC
21、.more demands for reservesD.a higher rate of the federal funds3.4 Follow-up TasksIII.Short Answer Questions Directions:Answer each of the following questions brieflybriefly.1.What are the specific goals of monetary policy?2.What is the basic approach to the formulation of monetary policy?3.How can o
22、pen market operations be further classified?4.Why did the Federal Reserve question the need for the seasonal credit facility?5.What are the possible consequences of a decrease in reserve requirements?3.4 Follow-up TasksIV.Translation Directions:Translate the following Chinese paragraph into Englishi
23、nto English.可以从狭义和广义两个层面来理解货币政策。狭义的货币政策是指中央银行为实现其特定的经济目标而采用的各种控制和调节货币供应量或信用量的方针和措施的总称，包括信贷政策、利率政策和外汇政策。广义的货币政策是指政府、中央银行和其他部门制定的一切关于货币的规定和采取的一切影响金融业的措施。When money speaks,the truth is silent.Russian proverbMonetary policy is not a panacea.Ben BernankeThe benefits from a world currency would be enormou
24、s.Robert MundellMoney is more eloquent than a dozen members of Parliament.Danish proverbMoney is like a sixth sense-and you cant make use of the other five without it.William Maugham3.5 Extended TasksI.Proverbs and Quotes3.5 Extended TasksII.Interview ExcerptJanet Yellen is an American economist who
25、 served as the Chair of the Board of Governors of the Federal Reserve System from 2014 to 2018,and as Vice Chair from 2010 to 2014.In this interview excerpt,Janet Yellen talks about the goals of the American monetary policy.3.5 Extended TasksIII.Movie ClipThis clip introduces Friedrich Hayeks view on monetary policies.Thanks
