国际经济学-克鲁格曼英文版课件-nobel08ch14货币汇率.pptVIP

Chapter 14 Money, Interest Rates, and Exchange Rates Preview What is money? Control of the supply of money The willingness to hold monetary assets A model of real monetary assets and interest rates A model of real monetary assets, interest rates, and exchange rates Long run effects of changes in money on prices, interest rates, and exchange rates What Is Money? Money is an asset that is widely used as a means of payment. Different groups of assets may be classified as money. Money can be defined narrowly or broadly. Currency in circulation, checking deposits, and debit card accounts form a narrow definition of money. Deposits of currency are excluded from this narrow definition, although they may act a substitute for money in a broader definition. What Is Money? (cont.) Money is a liquid asset: it can be easily used to pay for goods and services or to repay debt without substantial transaction costs. But monetary or liquid assets earn little or no interest. Illiquid assets require substantial transaction costs in terms of time, effort or fees to convert them to funds for payment. But they generally earn a higher interest rate or rate of return than monetary assets. What Is Money? (cont.) Let’s group assets into monetary assets (or liquid assets) and non-monetary assets (or illiquid assets). The demarcation between the two is arbitrary, but currency in circulation, checking deposits, debit card accounts, savings deposits, time deposits are generally more liquid than bonds, loans, deposits of currency in the foreign exchange markets, stocks, real estate, and other assets. Money Supply The central bank substantially controls the quantity of money that circulates in an economy, the money supply. In the US, the central banking system is the Federal Reserve System. The Federal Reserve System directly regulates the amount of currency in circulation. It indirectly influences the amount of checking deposits, debit card accounts, and other monetary assets. Money Demand