macro-ch16-presentation 2要点.ppt

CHAPTER 16 THE MONETARY SYSTEM In this chapter, look for the answers to these questions: What assets are considered “money”? What are the functions of money? The types of money? What is the Federal Reserve? What role do banks play in the monetary system? How do banks “create money”? How does the Federal Reserve control the money supply? 0 CHAPTER 16 THE MONETARY SYSTEM What Money Is, and Why It’s Important Without money, trade would require barter, the exchange of one good or service for another. Every transaction would require a double coincidence of wants(欲望的双向一致性） – the unlikely occurrence that two people each have a good the other wants. Most people would have to spend time searching for others to trade with – a huge waste of resources. This searching is unnecessary with money, the set of assets that people regularly use to buy gs from other people. 0 CHAPTER 16 THE MONETARY SYSTEM The 3 Functions of Money Medium of exchange（交换媒介）: an item buyers give to sellers when they want to purchase gs Unit of account（计价单位）: the yardstick people use to post prices and record debts Store of value（价值储藏）: an item people can use to transfer purchasing power from the present to the future 0 CHAPTER 16 THE MONETARY SYSTEM The 2 Kinds of Money Commodity money: takes the form of a commodity with intrinsic value Examples: gold coins, cigarettes in POW camps Fiat money: （纸币货币）money without intrinsic value, used as money because of govt decree Example: the U.S. dollar 0 CHAPTER 16 THE MONETARY SYSTEM The Money Supply The money supply (or money stock):the quantity of money available in the economy What assets should be considered part of the money supply? Two candidates: Currency: the paper bills and coins in the hands of the (non-bank) public Demand deposits: balances in bank accounts that depositors can access on demand by writing a check 0 CHAPTER 16 THE MONETARY SYSTEM Measures of the U.S. Money Supply M1: currency, demand deposits, tr