米什金货币银行学的课件.pptVIP

Functions of Money medium of exchange. unit of account store of value Means of payment Measuring Money monetary aggregates M1 M2 M3 Measuring Interest Rates simple loan fixed-payment loan coupon bond discount bond Other Measures of Interest Rates Current Yield: yield on a discount basis The Distinction Between Interest Rates and Returns 1. Rate of return The return on a bond will not necessarily equal the interest rate on that bond. Maturity and the Volatility of Bond Returns: Interest-Rate Risk Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. interest-rate risk:The possible reduction in returns associated with changes in interest rates. The Distinction Between Real and Nominal Interest Rates nominal interest rate:An interest rate that does not take inflation into account. real interest rate:The interest rate adjusted for expected changes in the price level (inflation) so that it more accurately reflects the true cost of borrowing. Determinants of Asset Demand Wealth expected return Risk Liquidity Theory of asset demand The quantity demanded of an asset is positively related to wealth. The quantity demanded of an asset is positively related to its expected return relative to alternative assets. The quantity demanded of an asset is negatively related to the risk of its return relative to alternative assets. The quantity demanded of an asset is positively related to its liquidity relative to alternative assets. Loanable Funds Framework: Supply and Demand in the Bond Market 1. Demand Curve demand curve has the usual downward slope,indicating that at lower prices of the bond (everything else being equal),the quantity demanded is higher. 2.Supply Curve supply curve: Supply curve has the usual upward slope,indicating that as the price increases (everything else being equal),the quantity supplied increases. 3.Market Equilibrium Bd=Bs Supply and Demand Analysis loanable funds frame