曼昆《经济学原理》10monetarysystem--(汉魅HanMei—经济金融类汇总分享).ppt

10 MONEY AND PRICES IN THE LONG RUNCopyright © 2004 South-Western29The Monetary SystemCopyright © 2004 South-WesternTHE MEANING OF MONEY• Money is the set of assets in an economy that people regularly use to buy goods and services from other people.Copyright © 2004 South-WesternThe Functions of Money• Money has three functions in the economy: • Medium of exchange • Unit of account • Store of valueCopyright © 2004 South-WesternThe Functions of Money• Medium of Exchange • A medium of exchange is an item that buyers give to sellers when they want to purchase goods and services. • A medium of exchange is anything that is readily acceptable as payment.Copyright © 2004 South-WesternThe Functions of Money• Unit of Account • A unit of account is the yardstick people use to post prices and record debts. • Store of Value • A store of value is an item that people can use to transfer purchasing power from the present to the future.Copyright © 2004 South-WesternThe Functions of Money• Liquidity • Liquidity is the ease with which an asset can be converted into the economy’s medium of exchange.Copyright © 2004 South-WesternThe Kinds of Money• Commodity money takes the form of a commodity with intrinsic value. • Examples: Gold, silver, cigarettes. • Fiat money is used as money because of government decree. • It does not have intrinsic value. • Examples: Coins, currency, check deposits.Copyright © 2004 South-WesternMoney in the U.S. Economy• Currency is the paper bills and coins in the hands of the public. • Demand deposits are balances in bank accounts that depositors can access on demand by writing a check.Figure 1 Money in the U.S. EconomyCopyright©2003 Southwestern/Thomson LearningBillions of Dollars• Currency ($580 billion)• Demand deposits • Traveler’s checks • Other checkable deposits($599 billion)• Everything in M1 ($1,179 billion)• Savings deposits • Small time deposits • Money marketmutual funds • A few minor categories($4,276 billion)0M1 $1,179M2$5,455Copyright © 2004 South-WesternCASE STUDY: Where Is All The Currency?• In 2001 there was about $580 billion of U.S. currency outstanding. • That is $2,734 in currency per adult. • Who is holding all this currency? • Currency held abroad • Currency held by illegal entitiesCopyright © 2004 South-WesternTHE FEDERAL RESERVE SYSTEM• The Federal Reserve (Fed) serves as the nation’s central bank. • It is designed to oversee the banking system. • It regulates the quantity of money in the economy.Copyright © 2004 South-WesternTHE FEDERAL RESERVE SYSTEM• The Fed was created in 1914 after a series of bank failures convinced Congress that the United States needed a central bank to ensure the health of the nation’s banking system.Copyright © 2004 South-WesternTHE FEDERAL RESERVE SYSTEM• The Structure of the Federal Reserve System: • The primary elements in the Federal Reserve System are: • 1) The Board of Governors • 2) The Regional Federal Reserve Banks • 3) The Federal Open Market CommitteeCopyright © 2004 South-WesternThe Fed’s Organization• The Fed is run by a Board of Governors, which has seven members appointed by the president and confirmed by the Senate. • Among the seven members, the most important is the chairman. • The chairman directs the Fed staff, presides over board meetings, and testifies about Fed policy in front of Congressional Committees.Copyright © 2004 South-WesternThe Fed’s Organization• The Board of Governors • Seven members • Appointed by the president • Confirmed by the Senate • Serve staggered 14-year terms so that one comes vacant every two years. • President appoints a member as chairman to serve a four-year term.Copyright © 2004 South-WesternThe Fed’s Organization• The Federal Reserve System is made up of the Federal Reserve Board in Washington, D.C., and twelve regional Federal Reserve Banks.Copyright © 2004 South-WesternThe Fed’s Organization• The Federal Reserve Banks • Twelve district banks • Nine directors • Three appointed by the Board of Governors. • Six are elected by the commercial banks in the district. • The directors appoint the district president, which is approved by the Board of Governors.The Federal Reserve SystemCopyright©2003 Southwestern/Thomson LearningCopyright © 2004 South-WesternThe Fed’s Organization• The Federal Reserve Banks • The New York Fed implements some of the Fed’s most important policy decisions.Copyright © 2004 South-WesternThe Fed’s Organization• The Federal Open Market Committee (FOMC) • Serves as the main policy-making organ of the Federal Reserve System. • Meets approximately every six weeks to review the economy.Copyright © 2004 South-WesternThe Fed’s Organization• The Federal Open Market Committee (FOMC) is made up of the following voting members: • The chairman and the other six members of the Board of Governors. • The president of the Federal Reserve Bank of New York. • The presidents of the other regional Federal Reserve banks (four vote on 。