Money, Output, and Prices钱，输出，和价格.pptVIP

Money, Output, and Prices Classical vs. Keynesians What is Money? Is this money? Is this money? Is this money? Is this money? Is this money? What is Money? We normally think of currency when we think of money. However, more generally speaking, money is any commodity which satisfies the following: Unit of account What is Money? We normally think of currency when we think of money. However, more generally speaking, money is any commodity which satisfies the following: Unit of account Store of Value What is Money? We normally think of currency when we think of money. However, more generally speaking, money is any commodity which satisfies the following: Unit of account Store of Value Medium exchange Commodity money vs. Fiat Money Commodity money vs. Fiat Money In a commodity money system, the chosen “medium of exchange” has real, intrinsic value (gold, silver, etc.) Commodity money vs. Fiat Money In a commodity money system, the chosen “medium of exchange” has real, intrinsic value (gold, silver, etc.) With a fiat money system , the chosen medium of exchange has no intrinsic value (paper currency) Commodity money vs. Fiat Money In a commodity money system, the chosen “medium of exchange” has real, intrinsic value (gold, silver, etc.) With a fiat money system , the chosen medium of exchange has no intrinsic value (paper currency) Fiat money is accepted because of faith! Standard Definitions of Money Standard Definitions of Money Monetary Base (M0): Direct liabilities of the central bank Currency in circulation + Bank Reserves Standard Definitions of Money Monetary Base (M0): Direct liabilities of the central bank Currency in circulation + Bank Reserves M1: Currency in circulation + Travelers Checks + Checking accounts Standard Definitions of Money Monetary Base (M0): Direct liabilities of the central bank Currency in circulation + Bank Reserves M1: Currency in circulation + Travelers Checks + Checking accounts M2: M1 + Savings accounts + Money Market Accounts +