货币与通货膨胀-讲义.pdf

The Money Market ： Money and Inflation What Is Money ？ Inflation and Its Trend: 1960-2009 15% % change in CPI 12% from 12 months earlier 9% long-run trend 6% 3% 0% -3% 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Money and Prices • Inflation rate = the percentage increase in the average level of prices. • Price = amount of money required to buy a good. Money and Prices • Because prices are defined in terms of money, we need to consider the nature of money, the supply of money, and how it is controlled. Money: Definition Money is the stock of assets that can be readily used to make transactions. Money: Functions • store of value: transfers purchasing power from the present to the future • unit of account: the common unit by which everyone measures prices and values • medium of exchange: we use it to buy stuff Money: Types 1. Fiat money –has no intrinsic value –example: the paper currency we use 2. Commodity money –has intrinsic value –examples: gold coins, cigarettes in P.O.W. camps Commodity and Fiat Monies Bimetallism Gold Standard Fiat Monies 金银复本位制 金本位制 法定货币制度 The money supply monetary policy • The money supply is the quantity of money available in the economy. • Monetary policy is the control over the money supply. How to Controls the Money Supply Three tools are available to the Fed for changing the money supply: 1. changing the required reserve rati