布兰查德宏观经济学 第四版 ppt 第04章.ppt

The Demand for Money The Fed (short for Federal Reserve Bank) is the U.S. central bank. Money, which can be used for transactions, pays no interest. There are two types of money: currency and checkable deposits. Bonds, pay a positive interest rate, i, but they cannot be used for transactions. The Demand for Money The proportions of money and bonds you wish to hold depend mainly on two variables: Your level of transactions The interest rate on bonds Money market funds pool together the funds of many people and use these funds to buy bonds – typically, government bonds. Income is what you earn from working plus what you receive in interest and dividends. It is a flow—that is, it is expressed per unit of time. Saving is that part of after-tax income that is not spent. It is also a flow. Savings is sometimes used as a synonym for wealth (a term we will not use in this course). Your financial wealth, or simply wealth, is the value of all your financial assets minus all your financial liabilities. Wealth is a stock variable—measured at a given point in time. Investment is a term economists reserve for the purchase of new capital goods, such as machines, plants, or office buildings. The purchase of shares of stock or other financial assets is financial investment. The demand for money: increases in proportion to nominal income ($Y), and depends negatively on the interest rate (through L(i) ,note the negative sign underneath L(i) ). Deriving the Demand for Money Figure 4 - 1 The Determination ofthe Interest Rate. i In this section, we assume that checkable deposits do not exist – that the only money in the economy is currency. The role of banks as suppliers of money (and checkable deposits) is introduced in the next section. Money Demand, Money Supply,and the Equilibrium Interest Rate Equilibrium in financial markets requires that money supply be equal to money demand, or that Ms = Md. Then using this equation, the equilibrium condition is: Money Supply =