货币供给与货币需求概述.ppt

* * * * The point of all this algebra is to express the money supply in terms of the 3 exogenous variables described on the preceding slide. * * * Solution: 1. An increase in cr causes the money multiplier and therefore M itself to fall. An increase in cr raises both the numerator and denominator of the expression for m. But since rr 1, the denominator is smaller than the numerator, so a given increase in cr will increase the denominator proportionally more than the numerator, causing a decrease in m. If your students know calculus, they can use the quotient rule to find (dm/dcr) 0. 2. If households deposit less of their money, then banks can’t make as many loans, so the banking system won’t be able to “create” as much money. The following slide shows the solution. * * * Why it’s called “open market operations”: The “operations” are the buying and selling. The market in which U.S. Treasury bonds are traded is “open” in the sense that anyone---you, me, the Fed---can buy or sell in this market. * * * * Why not reserve requirements?Making them too low creates a risk of bank runs. Making them too high makes banking unprofitable. In addition, banking would be difficult if the Fed changed reserve requirements frequently. * * * Source: Adapted from Milton Friedman and Anna Schwartz, A Monetary History of the United States, 1867-1960 (Princeton, NJ: Princeton University Press, 1963), Appendix A. * * * * Why portfolio theories are not relevant for M1: As a store of value, M1 is dominated by other assets: other assets serve the store of value function as well as M1, but offer a better risk/return profile, so there is no reason why anybody would hold M1 for a store of value. * * * Intuition for the signs: Stocks and bonds are alternatives to money. An increase in their expected returns makes money less attractive, and thus reduces desired money holdings. The real return to holding money is -?e. An increase in ?e is a decrease in t