宏观经济学HUBBARD_MACRO_SG_13的.pdfVIP

Chapter13(25)

Money,Banks,andthe

FederalReserveSystem

ChapterSummary

Moneyplaysakeyroleinthefunctioningofaneconomybyfacilitatingtradeingoodsandservicesand

bymakingspecializationpossible.Noadvancedeconomycanprosperwithoutspecialization.This

chapterexploresthefunctionsofmoney,thedefinitionsofmoney,andhowbankscreatemoney.

Abartereconomyisaneconomythatdoesnotusemoneyandinwhichpeopletradegoodsandservices

directlyforothergoodsandservices.Becausebarterisinefficient,thereisstrongincentivetousemoney,

whichisanyassetthatpeoplearegenerallywillingtoacceptinexchangeforgoodsorservicesorin

paymentofdebts.Moneyhasfourfunctions.Itis:

1.amediumofexchange

2.aunitofaccount

3.astoreofvalue

4.astandardofdeferredpayment

ThenarrowestdefinitionofthemoneysupplyintheUnitedStatestodayisM1,whichincludescurrency,

checkingaccountbalances,andtraveler’schecks.AbroaderdefinitionofthemoneysupplyisM2,which

includeseverythingthatisinM1,plussavingsaccounts,small-denominationtimedeposits(suchas

certificatesofdeposit(CDs)),moneymarketdepositaccountsinbanks,andnoninstitutionalmoney

marketfundshares.

Reservesaredepositsthatthebankhasretainedratherthanloanedoutorinvested.Requiredreserves

arereservesthatbanksarelegallyrequiredtohold.Thefractionofdepositsthatbanksarerequiredto

keepasreservesiscalledtherequiredreserveratio.Anyreservesbanksholdoverandabovethelegal

requirementarecalledexcessreserves.Whenabankacceptsadeposit,itkeepsonlyafractionofthe

fundsasreservesandloansouttheremainder.Inmakingaloan,abankincreasesthecheckingaccount

balanceoftheborrower.Whenth