Tutorial_CHAP04

1、Chapter Four1CHAPTER 4 Money and InflationA PowerPointTutorialTo Accompany MACROECONOMICS, 6th. ed.N. Gregory MankiwByMannig J. SimidianChapter Four2MoneyInflation is an increase in the average level of prices, and a price is the rate at which money is exchanged for a good or service.Chapter Four3 I

2、t serves as a store of value, unit of account, and a medium of exchange. The ease with which money is converted into other things such as goods and services-is sometimes called moneys liquidity.Chapter Four4Money is the yardstick with which we measureeconomic transactions. Without it, we would befor

3、ced to barter. However, barter requires the double coincidence of wantsthe unlikelysituation of two people, each having a good thatthe other wants at the right time and place to makean exchange.Chapter Four5Fiat money is money by declaration.It has no intrinsic value.Commodity money is money thathas

4、 intrinsic value.When people use gold as money, the economy is said to be on a gold standard.Chapter Four6The government may get involved in the monetary system to help people reduce transaction costs. Using gold as a currency is costly because the purity and weight has to be verified. Also,coins ar

5、e more widely recognized than gold bullion.The government then accepts gold from the public in exchange for gold-certificates pieces of paper that can be redeemed for actual gold. If people trust that the government will give them the gold upon request, then the currency will be just as valuable as

6、the gold itselfplus, it is easier to carry around the paper than the gold. The end result is that because no one redeems the gold anymore and everyone accepts the paper, they will have value and serve as money.Chapter Four7The money supply is the quantity of money available in an economy.The control

7、 over the money supply is called monetary policy.In the United States, monetary policy is conducted in a partially independent institution called the central bank. The central bank in theU.S. is called the Federal Reserve, or the Fed.Chapter Four8To expand the money supply: The Federal Reserve buys

8、U.S. Treasury Bonds and pays for them with new money.To reduce the money supply: The Federal Reserve sells U.S. Treasury Bonds and receives the existing dollars and then destroys them.The bearer of the United StatesTreasury bond is hereby promisedthe repayment of the principlevalue plus the interest

9、 which itincurs through the terms statedthereof.The United States will justly repayits bearers in its entirety andwill not default under any circumstances. Signature of the President _US. Treasury BondChapter Four9The Federal Reserve controls the money supply in 3 ways:Conducting Open Market Operati

10、ons (buying and selling U.S. Treasury bonds).Changing the Reserve requirements (never really used).Changing the Discount rate which member banks (not meeting the reserve requirements) pay to borrow from the Fed.The bearer of the United StatesTreasury bond is hereby promisedthe repayment of the princ

11、iplevalue plus the interest which itincurs through the terms statedthereof.The United States will justly repayits bearers in its entirety andwill not default under any circumstances. Signature of the President _US. Treasury BondChapter Four10 美國聯(lián)邦儲備系統(tǒng)的結(jié)構(gòu)美國聯(lián)邦儲備系統(tǒng)的結(jié)構(gòu) 美國聯(lián)邦儲備系統(tǒng)的結(jié)構(gòu)屬于二元式的單美國聯(lián)邦儲備系統(tǒng)的結(jié)構(gòu)屬于二元式

12、的單一中央銀行制。一中央銀行制。 它是由三個主要組成部分構(gòu)成的，即：它是由三個主要組成部分構(gòu)成的，即： 聯(lián)邦級的聯(lián)邦儲備理事會聯(lián)邦級的聯(lián)邦儲備理事會 聯(lián)邦公開市場委員會聯(lián)邦公開市場委員會 地方級的地方級的12 12家聯(lián)邦儲備銀行及其分支結(jié)構(gòu)。家聯(lián)邦儲備銀行及其分支結(jié)構(gòu)。 Chapter Four11聯(lián)邦儲備理事會聯(lián)邦儲備理事會 是聯(lián)邦儲備系統(tǒng)的最高機構(gòu)，它由是聯(lián)邦儲備系統(tǒng)的最高機構(gòu)，它由7 7名理事組名理事組成（他們大多是職業(yè)經(jīng)濟學(xué)家），由總統(tǒng)征得參成（他們大多是職業(yè)經(jīng)濟學(xué)家），由總統(tǒng)征得參議院同意后任命，每一理事任期議院同意后任命，每一理事任期1414年，屆滿后不年，屆滿后不再連任，并且任期

13、互相錯開。再連任，并且任期互相錯開。 Chapter Four12聯(lián)邦公開市場委員會聯(lián)邦公開市場委員會 由于公開市場業(yè)務(wù)在聯(lián)邦儲備系統(tǒng)實施其貨由于公開市場業(yè)務(wù)在聯(lián)邦儲備系統(tǒng)實施其貨幣政策過程中的重要性，聯(lián)邦公開市場委員會也幣政策過程中的重要性，聯(lián)邦公開市場委員會也就成為聯(lián)邦儲備系統(tǒng)內(nèi)一個重要的決策中心。就成為聯(lián)邦儲備系統(tǒng)內(nèi)一個重要的決策中心。 該委員會由該委員會由1212名委員組成，其中包括名委員組成，其中包括7 7名聯(lián)名聯(lián)邦儲備理事會理事，邦儲備理事會理事，5 5名聯(lián)邦儲備銀行行長（其中名聯(lián)邦儲備銀行行長（其中紐約聯(lián)邦儲備銀行行長為委員會的必然成員，其紐約聯(lián)邦儲備銀行行長為委員會的必然成員，

14、其余余1111家聯(lián)邦儲備銀行的行長則輪流占據(jù)其余的家聯(lián)邦儲備銀行的行長則輪流占據(jù)其余的4 4個個席位）席位） Chapter Four13地方級的地方級的1212家聯(lián)邦儲備銀行家聯(lián)邦儲備銀行 按按1212個聯(lián)邦儲備區(qū)設(shè)立的個聯(lián)邦儲備區(qū)設(shè)立的1212家聯(lián)邦儲備銀行分別家聯(lián)邦儲備銀行分別位于：位于： 紐約、波士頓、費城、克利夫蘭、里士滿、亞特紐約、波士頓、費城、克利夫蘭、里士滿、亞特蘭大，芝加哥、圣路易斯、明尼阿波利斯、堪薩斯蘭大，芝加哥、圣路易斯、明尼阿波利斯、堪薩斯城、達拉斯和舊金山城、達拉斯和舊金山。 Chapter Four14Chapter Four15貨幣量的構(gòu)成貨幣量的構(gòu)成 M1 包

15、括能直接、立即，并無限制地進行支付包括能直接、立即，并無限制地進行支付的要求權(quán)；最貼切地符合貨幣作為支付手段的的要求權(quán)；最貼切地符合貨幣作為支付手段的傳統(tǒng)定義。這些要求權(quán)具有流動性。傳統(tǒng)定義。這些要求權(quán)具有流動性。 M2 在在M1 基礎(chǔ)上，還包括非立即流動的要求基礎(chǔ)上，還包括非立即流動的要求權(quán)。權(quán)。 在美國，還有其他指標，各指標間具體區(qū)別詳在美國，還有其他指標，各指標間具體區(qū)別詳見下圖。見下圖。 要指出的是，當資產(chǎn)的利息收益增加時，其流要指出的是，當資產(chǎn)的利息收益增加時，其流動性反而降低。動性反而降低。Chapter Four16美國貨幣存量的構(gòu)成美國貨幣存量的構(gòu)成1、通貨：由流通中硬幣和紙幣

16、構(gòu)成、通貨：由流通中硬幣和紙幣構(gòu)成2、活期存款：商業(yè)銀行的無息支票賬戶，不含其他銀行、政府和外國、活期存款：商業(yè)銀行的無息支票賬戶，不含其他銀行、政府和外國政府的存款。政府的存款。3、旅行支票：只能由非銀行機構(gòu)發(fā)行的支票。銀行發(fā)行的旅行支票包、旅行支票：只能由非銀行機構(gòu)發(fā)行的支票。銀行發(fā)行的旅行支票包括在活期存款中。括在活期存款中。4、其他支票存款：具有各種法律安排和各種銷售名稱的生息支、其他支票存款：具有各種法律安排和各種銷售名稱的生息支M15、貨幣市場共同基金股份：投資于短期資產(chǎn)的共同基金中的生息支票、貨幣市場共同基金股份：投資于短期資產(chǎn)的共同基金中的生息支票存款。存款。6、貨幣市場存款賬

17、戶：由銀行經(jīng)營，其優(yōu)點是具有最高達、貨幣市場存款賬戶：由銀行經(jīng)營，其優(yōu)點是具有最高達10 萬美元的萬美元的保險。保險。7、儲蓄存款：指在銀行和其他儲蓄機構(gòu)中的存款，但不能由支票進行、儲蓄存款：指在銀行和其他儲蓄機構(gòu)中的存款，但不能由支票進行轉(zhuǎn)讓，通常記錄在存戶持有的單獨存折上。轉(zhuǎn)讓，通常記錄在存戶持有的單獨存折上。8、小額定期存款：生息存款，并有特定到期日，提前支取須付罰金。、小額定期存款：生息存款，并有特定到期日，提前支取須付罰金。M2Chapter Four17 9、回購協(xié)議：指銀行向非銀行客戶借款的交易。、回購協(xié)議：指銀行向非銀行客戶借款的交易。 10、歐洲美元：第二天到期的付息存款通常

18、由美國銀、歐洲美元：第二天到期的付息存款通常由美國銀行的海外分行（特別是加勒比地區(qū)）持有。行的海外分行（特別是加勒比地區(qū)）持有。 11、大額定期存款：數(shù)額大于、大額定期存款：數(shù)額大于10 萬美元的生息存款。萬美元的生息存款。 12、機構(gòu)持有的貨幣市場共同基金股份。、機構(gòu)持有的貨幣市場共同基金股份。M3 13、儲蓄債券：美國政府債券，通常賣給小儲蓄者。、儲蓄債券：美國政府債券，通常賣給小儲蓄者。 14、銀行承兌匯票：銀行有義務(wù)在特定時間支付特定、銀行承兌匯票：銀行有義務(wù)在特定時間支付特定數(shù)額的匯票。數(shù)額的匯票。 15、商業(yè)票據(jù)：公司的短期負債。、商業(yè)票據(jù)：公司的短期負債。 16、短期國庫證券：由

19、美國財政部發(fā)行的不足、短期國庫證券：由美國財政部發(fā)行的不足12 個月個月到期的證券。到期的證券。LChapter Four18The quantity equation is an identity: the definitions of the four variables make it true. If one variable changes, one or more of the others must also change to maintain the identity. The quantity equation we will use from now on is the

20、money supply (M) times the velocity of money (V) which equals price (P) times the number of transactions (T):Money Velocity = Price Transactions M V = P TV in the quantity equation is called the transactions velocity of money. This tells us the number of times a dollar bill changes hands in a given

21、period of time.Chapter Four19Transactions and output are related, because the more theeconomy produces, the more goods are bought and sold.If Y denotes the amount of output and P denotes the price of oneunit of output, then the dollar value of output is PY. Weencountered measures for these variables

22、 when we discussedthe national income accounts.Money Velocity = Price Output M V = P YThis version of the quantity equation is called the incomevelocity of money, which tells us the number of times a dollarbill enters someones income in a given time.Chapter Four20Lets now express the quantity of mon

23、ey in terms of the quantity ofgoods and services it can buy. This amount, M/P is called real money balances. Real money balances measure the purchasing power of the stock of money.A money demand function is an equation that shows the determinants of real money balances people wish to hold. Here is a

24、 simple money demand function:where k is a constant that tells us how much money people want to hold for every dollar they earn. This equation states that the quantity of real money balances demanded is proportional to real income.(M/P)d = k k YChapter Four21The money demand function is like the dem

25、and function for a particular good. Here the “good” is the convenience of holding real money balances. Higher income leads to a greater demand for real money balances. The money demand equation offers another way to view the quantity equation (MV= PY) where V = 1/k.This shows the link between the de

26、mand for money and the velocityof money. When people hold a lot of money for each dollar of income (k is large), money changes hands infrequently (V is small).Conversely, when people want to hold only a little money (k is small), money changes hands frequently (V is large). In other words, the money

27、 demand parameter k and the velocity of money V are opposite sides of the same coin.Chapter Four22The quantity equation can be viewed as a definition: it defines velocity V as the ratio of nominal GDP, PY, to the quantity of money M. But, if we make the assumption that the velocity of money is const

28、ant, then the quantity equation MV = PY becomes a useful theory of the effects of money. The bar over the V means that velocity is fixed. So, lets hold it constant! Remembera change in the quantity of money causesa proportional change in nominal GDP.MV = PYChapter Four23Three building blocks that de

29、termine the economys overall level of prices:The factors of production and the production function determinethe level of output Y.The money supply determines the nominal value of output, PY.This follows from the quantity equation and the assumption thatthe velocity of money is fixed.The price level

30、P is then the ratio of the nominal value of output,PY, to the level of output Y.Chapter Four24In other words, if Y is fixed (from Chapter 3) because it dependson the growth in the factors of production and on technological progress, and we just made the assumption that velocity is constant,or in per

31、centage change form: MV = PY% Change in M + % Change in V = % Change in P + % Change in Yif V is fixed and Y is fixed, then it reveals that % Change in M is what induces % Changes in P.The quantity theory of money states that the central bank, whichcontrols the money supply, has the ultimate control

32、 over the inflation rate. If the central bank keeps the money supply stable,the price level will be stable. If the central bank increases the money supply rapidly, the price level will rise rapidly.Chapter Four25The revenue raised through the printing of money is called seigniorage. When the governm

33、ent prints money to finance expenditure, it increases the money supply. The increase in the money supply, in turn, causes inflation. Printing money to raise revenue is like imposing an inflation tax.Chapter Four26Chapter Four27Economists call the interest rate that the bank pays the Nominal interest

34、 rate and the increase in your purchasing power thereal interest rate.This shows the relationship between the nominal interest rateand the rate of inflation, where r is real interest rate, i is the nominal interest rate and p is the rate of inflation, and rememberthat p is simply the percentage chan

35、ge of the price level P. Chapter Four28The Fisher Equation illuminates the distinction between the real and nominal rate of interest.The one-to-one relationshipbetween the inflation rate and the nominal interest rate isthe Fisher effect.It shows that the nominal interest can change for two reasons:

36、becausethe real interest rate changes or because the inflation rate changes.Chapter Four29% Change in M + % Change in V = % Change in P + % Change in Y% Change in M + % Change in V = p + % Change in Yi = r + pThe quantity theory and the Fisher equation together tell us how money growth affects the n

37、ominal interest rate. According to the quantity theory, an increase in the rate of money growth of one percent causes a 1% increase in the rate of inflation. According to the Fisher equation, a 1% increase in the rate of inflation in turn causes a 1% increase in the nominal interest rates. Here is t

38、he exact link between our two familiar equations: The quantity equation in percentage change form and the Fisher equation. Chapter Four30The real interest rate the borrower and lender expect when a loan is made is called the ex ante real interest rate. The real interestrate that is actually realized

39、 is called the ex post real interest rate.Although borrowers and lenders cannot predict future inflation withcertainty, they do have some expectation of the inflation rate. Let pdenote actual future inflation and pe the expectation of future inflation.The ex ante real interest rate is i - pe, and th

40、e ex post real interest rate isi - p. The two interest rates differ when actual inflation p differs fromexpected inflation pe.How does this distinction modify the Fisher effect? Clearly the nominalinterest rate cannot adjust to actual inflation, because actual inflationis not known when the nominal

41、interest rate is set. The nominal interestrate can adjust only to expected inflation. The next slide presents amore precise version of the the Fisher effect.Chapter Four31The ex ante real interest rate r is determined by equilibrium in themarket for goods and services, as described by the model inCh

42、apter 3. The nominal interest rate i moves one-for-one withchanges in expected inflation pe.Chapter Four32The quantity theory (MV = PY) is based on a simple money demand function: it assumes that the demand for real money balances is proportional to income. But, we need another determinant of the qu

43、antity of money demandedthe nominal interest rate.The nominal interest rate is the opportunity cost of holding money:it is what you give up by holding money instead of bonds. So, the newgeneral money demand function can be written as: (M/P)d = L(i, Y)This equation states that the demand for the liqu

44、idity of real moneybalances is a function of income (Y) and the nominal interest rate (i).The higher the level of income Y, the greater the demand for realmoney balances.Chapter Four33As the quantity theory of money explains, money supply and money demand together determine the equilibrium price lev

45、el. Changes in the price level are, by definition, the rate of inflation. Inflation, in turn, affects the nominal interest rate through the Fisher effect. But now, because the nominal interest rate is the cost of holding money, the nominal interest rate feeds back into the demand for money.Money Sup

46、ply & Money DemandInflation & the Fisher EffectChapter Four34The inconvenience of reducing moneyholding is metaphorically called theshoe-leather cost of inflation, becausewalking to the bank more often inducesones shoes to wear out more quickly.When changes in inflation require printingand d

47、istributing new pricing information,then, these costs are called menu costs.Another cost is related to tax laws. Oftentax laws do not take into considerationinflationary effects on income.Chapter Four35Unanticipated inflation is unfavorable because it arbitrarily redistributes wealth among individuals.For example, it hurts individuals on fixed pensions. Often thesecontracts were not created in real terms by being indexed to a part