货币金融学What Is Money.ppt

Chapter3 WhatIsMoney MeaningofMoney Whatisit Money orthe moneysupply anythingthatisgenerallyacceptedinpaymentforgoodsorservicesorintherepaymentofdebts Aratherbroaddefinition MeaningofMoney Money astockconcept isdifferentfrom Wealth thetotalcollectionofpiecesofpropertythatservetostorevalueIncome flowofearningsperunitoftime aflowconcept FunctionsofMoney MediumofExchange Eliminatesthetroubleoffindingadoublecoincidenceofneeds reducestransactioncosts PromotesspecializationAmediumofexchangemustbeeasilystandardizedbewidelyacceptedbedivisiblebeeasytocarrynotdeterioratequickly FunctionsofMoney UnitofAccount usedtomeasurevalueintheeconomyreducestransactioncostsStoreofValue usedtosavepurchasingpowerovertime otherassetsalsoservethisfunctionMoneyisthemostliquidofallassetsbutlosesvalueduringinflation EvolutionofthePaymentsSystem CommodityMoney valuable easilystandardizedanddivisiblecommodities e g preciousmetals cigarettes FiatMoney papermoneydecreedbygovernmentsaslegaltender EvolutionofthePaymentsSystem Checks aninstructiontoyourbanktotransfermoneyfromyouraccountElectronicPayment e g onlinebillpay E Money electronicmoney DebitcardStored valuecard smartcard E cash MeasuringMoney Howdowemeasuremoney Whichparticularassetscanbecalled money Constructmonetaryaggregatesusingtheconceptofliquidity M1 mostliquidassets currency traveler schecks demanddeposits othercheckabledeposits MeasuringMoney M2 addstoM1otherassetsthatarenotsoliquid M1 smalldenominationtimedeposits savingsdepositsandmoneymarketdepositaccounts moneymarketmutualfundshares Table1MeasuresoftheMonetaryAggregates MonetaryAggregates M1vs M2 Doesitmatterwhichmeasureofmoneyisconsidered M1andM2canmoveindifferentdirectionsintheshortrun seefigure Conclusion thechoiceofmonetaryaggregateisimportantforpolicymakers FIGURE1GrowthRatesoftheM1andM2Aggregates 1960 2008 Sources FederalReserveBulletin p A4 Table1 10 variousissues Citibasedatabank www federalreserve gov releases h6 hist h6hist1 txt HowReliablearetheMoneyData Revisionsareissuedbecause SmalldepositoryinstitutionsreportinfrequentlyAdjustmentsmustbemadeforseasonalvariationWeprobablyshouldnotpaymuchattentiontoshort runmovementsinthemoneysupplynumbers butshouldbeconcernedonlywithlonger runmovements Table2GrowthRateofM2 InitialandRevisedSeries 2008 percent compoundedannualrate Chapter4 UnderstandingInterestRates PresentValue AdollarpaidtoyouoneyearfromnowislessvaluablethanadollarpaidtoyoutodayWhy Adollardepositedtodaycanearninterestandbecome 1x 1 i oneyearfromtoday DiscountingtheFuture SimplePresentValue TimeLine 100 100 Year 0 1 PV 100 2 100 100 n 100 1 i 100 1 i 2 100 1 i n Cannotdirectlycomparepaymentsscheduledindifferentpointsinthetimeline FourTypesofCreditMarketInstruments SimpleLoanFixedPaymentLoanCouponBondDiscountBond YieldtoMaturity Theinterestratethatequatesthepresentvalueofcashflowpaymentsreceivedfromadebtinstrumentwithitsvaluetoday SimpleLoan FixedPaymentLoan CouponBond Whenthecouponbondispricedatitsfacevalue theyieldtomaturityequalsthecouponrateThepriceofacouponbondandtheyieldtomaturityarenegativelyrelatedTheyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisbelowitsfacevalue Table1YieldstoMaturityona10 Coupon RateBondMaturinginTenYears FaceValue 1 000 ConsolorPerpetuity Abondwithnomaturitydatethatdoesnotrepayprincipalbutpaysfixedcouponpaymentsforever Forcouponbonds thisequationgivesthecurrentyield aneasytocalculateapproximationtotheyieldtomaturity DiscountBond RateofReturn RateofReturnandInterestRates ThereturnequalstheyieldtomaturityonlyiftheholdingperiodequalsthetimetomaturityAriseininterestratesisassociatedwithafallinbondprices resultinginacapitallossiftimetomaturityislongerthantheholdingperiodThemoredistantabond smaturity thegreaterthesizeofthepercentagepricechangeassociatedwithaninterest ratechange RateofReturnandInterestRates cont d Themoredistantabond smaturity thelowertherateofreturntheoccursasaresultofanincreaseintheinterestrateEvenifabondhasasubstantialinitialinterestrate itsreturncanbenegativeifinterestratesrise Table2One YearReturnsonDifferent Maturity10 Coupon RateBondsWhenInterestRatesRisefrom10 to20 Interest RateRisk Pricesandreturnsforlong termbondsaremorevolatilethanthoseforshorter termbondsThereisnointerest rateriskforanybondwhosetimetomaturitymatchestheholdingperiod RealandNominalInterestRates NominalinterestratemakesnoallowanceforinflationRealinterestrateisadjustedforchangesinpricelevelsoitmoreaccuratelyreflectsthecostofborrowingExanterealinterestrateisadjustedforexpectedchangesinthepricelevelExpostrealinterestrateisadjustedforactualchangesinthepricelevel FisherEquation FIGURE1RealandNominalInterestRates Three MonthTreasuryBill 1953 2008 Sources Nominalratesfromwww federalreserve gov releases H15 TherealrateisconstructedusingtheprocedureoutlinedinFredericS Mishkin TheRealInterestRate AnEmpirica