货币银行英文复习资料Chapter_Eight汇.pptVIP

Chapter Eight Money Demand Money Supply S.1.Money Demand 1.1.Implication of money demand 1, Some concepts of money demand 1) Money demand: Money demand refers to the quantity of money that the whole economy needs as medium of exchange, means of payment and store of value under certain economic condition. Desire resulting from the choice of interest cost, anticipated income Md Capacity being subject to the disposable income and wealth held 2) Nominal and real money demand Nominal money demand refers to people’s demand for money at the current price level while real money demand refers to people’s real demand for money corrected for the expected inflation. Md represents nominal money demand Md represents real money demand P S.1. Money Demand  1.1.Implication of money demand  1, Some concepts of money demand 3) Macro and micro money demand Micro money demand makes a study on how much money micro-entities should hold to obtain the maximum profit at lowest opportunity cost given the income level, interest rate level and other economic conditions. Macro money demand discusses the necessary quantity of money a nation should have in its economic growth and circulation of commodities and production during a certain period. S.1. Money Demand  1.1. Implication of money demand 2.Factors determining money demand. 1) The level of interest rates and financing conditions. 2)Yields and investment environment. 3)Expectation of inflation and price level. 4)Income level and techniques of finance management. 5)The velocity of money. 6) The efficiency of financial markets and transaction costs. S.1. Money Demand 1.2.Theories of money demand 1,Marx’s theory of money demand Quantity of money in the total amount of price circulation = the velocity of money