[经济学]FINANCIAL MARKET2.pptVIP

FINANCIAL MARKET Determination of interest rates Loanable funds theory可贷资金利率 Explain the movement and equilibrium (均衡） mechanism of interest rate可用于解释利率均衡机制 Basic analysis logic: the change of demand and supply for funds available How does the interest rate influence the demand and supply of funds? What factors influence the movements of the interest rate? Demand for loanable funds From household(家庭 ) From business From government From overseas( foreign demand) =aggregate（共计） demand for loanable funds Household demand The utilization for loanable funds: Financing to purchase autos/ consumption even real estate(不动产） Repayment by installment(分期付款） The demand is supported by individual income from salaries or investment---decided by the economic cycle（ high-prosperity phase繁荣阶段, low-depression phase萧条阶段) Inverse relationship between household demand： High i.r. increase the borrowing cost of households, decrease the demand for loan Business demand for loans Loans utilizing : invest in long term assets to support its projects / manufacturing by long term debt（loans） borrow short term funds to support operation (account receivables应收帐inventory存货） Shifts in business demand for loans Government demand for loanable funds Loans utilizing To match the gap (缺口） between planned budget and the incoming revenues from taxes and other sources. Basic instrument for loans –the Treasury or agency securities Feature of central government loans demand：Insensitive（不敏感） to the level of market i.r.---interest-inelastic ｛无利率弹性｝---for the funds will be used in long term, fundamental projects or in settling critical problems. The borrowing cost is not NO 1. Feature of municipal government loans demand---sometimes is sensitive to the high level of i.r., for local governments’ credit is not so reliable as the central governments’ Shifts in business demand for loans Foreign demand for loanable funds Including foreign governments’ and corporations’ demand Motivation of foreign participants---