清华大学货币银行学讲义（考研必备）Ch5 determination of interest rate.pptVIP

Ch5. Determination of interest rate To understand The role of interest rate in economy (preliminary) The theories of determination of interest rate Classical theory Loanable funds theory Liquidity preference theory Rational expectation theory The elements to influence interest rate 5.1 the role of interest rate in economy Interest rate is the key issues to determine the volume transformation of saving to investment Allocated the saving resources credit resources The key element to influence the equilibrium of money supply and money demand An important benchmark for value of other financial instruments (bonds, shares, funds) An important macro-economic policy 5.2 Conceptions of interest rate The rate of interest is a payment from borrow to lenders which compensates the latter for parting with funds for a period of time and at some risk. It is rewarding savers for giving-up the ability to consume for a period of time. 5.3 classical theory of interest rates Classical theory of interest rates is an explanation of the level of and changes in interest rates that relies on the interaction of the supply of savings and the demand for investment capital. It also called as real flow of funds theory. 5.4 Loanable funds theory of interest Loanable funds theory of interest was Primarily developed by monetary economist Dennid Robertson (1933). Keynesian theory. it think that the demand and supply of “loanable funds” decide real interest rate. 5.4.3 case study about equilibrium rate The factors of supply： The saving of household: +,- the critiral of loan of bank:+ - Money supply of central bank + - 5.5 liquidity preference theory of interest rates 5.5.1 demand of liquidity Motives：Transaction precautionary and speculation demand Demand of money：M/p=f(Y, i) 5.5.2 equilibrium of interest rate of liquidity theory： money supply＝money demand 5.5 liquidity preference theory of interest rates LP theory provides some useful insights into investor behavior and the influence