西方经济学(宏观)课件CHAPter05.ppt

CHAPTER 05 MONEY, BANKING, AND THE BANK OF CANADA What You Will Learn in this Chapter: The various roles money plays and the many forms it takes in the economy How the actions of private banks and the Bank of Canada determine the money supply How the Bank of Canada uses open-market operations and deposit switching to change the monetary base The Meaning of Money Money is any asset that can easily be used to purchase goods and services Currency in circulation is cash held by the public Chequeable bank deposits are bank accounts on which people can write cheques The money supply is the total value of financial assets in the economy that are considered money Roles of Money A store of value is a means of holding purchasing power over time A medium of exchange is an asset that individuals acquire for the purpose of trading rather than for their own consumption A unit of account is a measure used to set prices and make economic calculations Types of Money Commodity money is a good used as a medium of exchange that has other uses A commodity-backed money is a medium of exchange with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods Fiat money is a medium of exchange whose value derives entirely from its official status as a means of payment Measuring the Money Supply A monetary aggregate is an overall measure of the money supply Near-moneys are financial assets that can’t be directly used as a medium of exchange but can readily be converted into cash or chequeable bank deposits Three Measures of the Money Supply in Canada, July 2005 (billions of dollars) The Monetary Role of Banks A bank is a financial intermediary that uses liquid assets in the form of bank deposits to finance the illiquid investments of borrowers Bank reserves are the currency banks hold in their vaults plus their deposits at the Bank of Canada The reserve ratio is the fraction of bank deposits that a bank holds as reserves Assets and Liabilit