金融学双语第七章.ppt

Chapter Overview Targets of Monetary Policy Monetary policy instruments of the central bank The transmission Mechanism and intermediate targets of Monetary Policy The effects (potency) of monetary policy Economic growth Price stability Full employment Balance of payments equilibrium Economic growth Economic growth refers to the growth of a nations GDP, which is the total value of the goods and services domestically produced. But growth means more than merely increasing the total output. Its required that the output increase faster than the population growth so that the average output per person expands. Price stability  Price stability means the stability of currency value and control of inflation without any great change of the price level within a certain period. In modern economic society the general price level shows a rising trend in fact. Price stability is to confine the increase rate of the price level of a certain period to a certain scope. Full employment Full employment refers to that people who are able and willing to work can find suitable jobs at the present wage level. It is measured with the unemployed and the labor force willing to work, which represents the extent of full employment in a society. Unemployment means a loss of the potential output on the entire economy. Balance of payments equilibrium Balance of payments is the total record of a countrys economic transactions, including the money receipts from and payments to abroad, the difference between the receipts and payments being the surplus or deficit. The balance of payments during a certain period reflects the state of the economic development of a country and its external economy. The Unity conflict of monetary policy targets Price stability and full employment. The Philips curve shows that the higher the inflation rate, the lower the unemployment rate Price stability and economic growth Fast economic growth is often accompanied by inflation. Usually the price level in