1、曼昆经济学原理(宏观经济学分册)英文原版PPT课件29monetary-systemTHE MEANING OF MONEY Money is the set of assets in an economy that people regularly use to buy goods and services from other people.The Functions of Money Money has three functions in the economy:Medium of exchange Unit of account Store of valueThe Functions
2、 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 is readily acceptable as payment.The Functions of Money Unit of Account A unit of account is the yardstick people use to post p
3、rices 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.The Functions of Money Liquidity Liquidity is the ease with which an asset can be converted into the economys medium of exchange.The Kinds of Money Commod
4、ity money takes the form of a commodity with intrinsic value.Examples:Gold,silver,cigarettes.Fiat money is used as money because of government decree.It does not have intrinsic value.Examples:Coins,currency,check deposits.Money in the U.S.Economy Currency is the paper bills and coins in the hands of
5、 the public.Demand deposits are balances in bank 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 billio
6、n)Everything in M1($1,179 billion)Savings deposits Small time deposits Money market mutual funds A few minor categories($4,276 billion)0M1$1,179M2$5,455CASE 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 hold
7、ing all this currency?Currency held abroad Currency held by illegal entitiesTHE 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.THE FEDERAL RESERVE SYSTEM The Fed was crea
8、ted 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.THE FEDERAL RESERVE SYSTEM The Structure of the Federal Reserve System:The primary elements in the Federal Reserve System are:1)The Board of
9、Governors 2)The Regional Federal Reserve Banks 3)The Federal Open Market CommitteeThe Feds Organization The Fed is run by a Board of Governors,which has seven members appointed by the president and confirmed by the Senate.Among the seven members,the most important is the chairman.The chairman direct
10、s the Fed staff,presides over board meetings,and testifies about Fed policy in front of Congressional Committees.The Feds Organization The Board of Governors Seven members Appointed by the president Confirmed by the Senate Serve staggered 14-year terms so that one comes vacant every two years.Presid
11、ent appoints a member as chairman to serve a four-year term.The Feds Organization The Federal Reserve System is made up of the Federal Reserve Board in Washington,D.C.,and twelve regional Federal Reserve Banks.The Feds Organization The Federal Reserve Banks Twelve district banks Nine directors Three
12、 appointed by the Board of Governors.Six are elected by the commercial banks in the district.The directors appoint the district president,which is approved by the Board of Governors.The Federal Reserve SystemCopyright2003 Southwestern/Thomson LearningThe Feds Organization The Federal Reserve Banks T
13、he New York Fed implements some of the Feds most important policy decisions.The 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.The Feds Organization The Federal Op
14、en 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).The Feds Organiz
15、ation 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.The Federal Open Market Committee Three Primary Functions of the Fe
16、d 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 supply.The Federal Open Market Committee Open-Market Operations The
17、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.The Federal Open Market Committee Open-Market Operations To increase the money supply,the Fed bu
18、ys government bonds from the public.To decrease the money supply,the Fed sells government bonds to the public.BANKS AND THE MONEY SUPPLY Banks can influence the quantity of demand deposits in the economy and the money supply.BANKS AND THE MONEY SUPPLY Reserves are deposits that banks have received b
19、ut have not loaned out.In a fractional-reserve banking system,banks hold a fraction of the money deposited as reserves and lend out the rest.BANKS AND THE MONEY SUPPLY Reserve Ratio The reserve ratio is the fraction of deposits that banks hold as reserves.Money Creation with Fractional-Reserve Banki
20、ng When a bank makes a loan from its reserves,the money supply 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
21、 called the reserve ratio.Loans become an asset to the bank.Money 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
22、.00Deposits$100.00Total Assets$100.00Total Liabilities$100.00Money 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 money s
23、upply increases.The Money Multiplier How much money is eventually created in this economy?The Money Multiplier The money multiplier is the amount of money the banking system generates with each dollar of reserves.The Money Multiplier AssetsLiabilitiesFirst National BankReserves$10.00Loans$90.00Depos
24、its$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!The Money Multiplier The money multiplier is the reciprocal of the reserve ratio:M=1/R With a reserve requirem
25、ent,R=20%or 1/5,The multiplier is 5.The Feds Tools of Monetary Control The Fed has three tools in its monetary toolbox:Open-market operations Changing the reserve requirement Changing the discount rateThe Feds Tools of Monetary Control Open-Market Operations The Fed conducts open-market operations w
26、hen it buys government bonds from or sells government bonds to the public:When the Fed buys government bonds,the money supply increases.The money supply decreases when the Fed sells government bonds.The Feds Tools of Monetary Control Reserve Requirements The Fed also influences the money supply with
27、 reserve requirements.Reserve requirements are regulations on the minimum amount of reserves that banks must hold against deposits.The 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.Increasi
28、ng the reserve requirement decreases the money supply.Decreasing the reserve requirement increases the money supply.The 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 su
29、pply.Decreasing the discount rate increases the money supply.Problems 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 households c
30、hoose to hold as deposits in banks.The Fed does not control the amount of money that bankers choose to lend.Summary 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 exchange,a unit of account,and a store of
31、value.Commodity money is money that has intrinsic value.Fiat money is money without intrinsic value.Summary The Federal Reserve,the central bank of the United States,regulates the U.S.monetary system.It controls the money supply through open-market operations or by changing reserve requirements or t
32、he discount rate.Summary When banks loan out their deposits,they increase the quantity of money in the economy.Because the Fed cannot control the amount bankers choose to lend or the amount households choose to deposit in banks,the Feds control of the money supply is imperfect.此课件下载可自行编辑修改，仅供参考！此课件下载可自行编辑修改，仅供参考！感谢您的支持，我们努力做得更好！谢谢感谢您的支持，我们努力做得更好！谢谢
