清华大学货币银行学讲义（考研必备）ch2

1,Ch2. money & its measurement,Understand:Brief history of moneyWhat money is ? Definition of moneyFunctions of money/Money economy VS. barter economyMeasurement of moneyThe reasons of existence of money: theoretically analysis Monetary institution 货币制度,2,2.1 The brief history of money,Money in remote past:shells, fur, rice, livestockBronze age (w 3000，China 4000years)bronze currency of China, “pond”, lira ：Silver, gold, copperSpecial cases: tobacco of North A, corn, alcohol, cigarette of P.O.W camp in WW2Emerge of the paper currencyGoldsmith of Europe & moneychangerCredit money,3,Four stages of developmentFrom barter economy to commodity money economy: search costFrom common commodity money to precious metals: transaction costFrom metal money to paper currency: transaction costFrom paper currency to credit paper: transaction cost, overcome long-run deflation?,4,full-bodied money ：（全值货币）refers a kind of money that the value for use of it is equivalent to its value when used as a medium of exchange.全值货币作为货币的价值和作为商品价值相等的原因：由替代或套利活动导致的流动（price-specie-flow mechanism）导致平衡。full-bodied representative money ：(全值代表货币) Fully-bodied representative money is usually be made of paper which has quite litter value. However, this kind of paper currency is fully represent and is redeemable to the commodity money, hence, it can be accepted by the society for payment of transaction and defered payment for debt. Paper currency （纸币 ） is redeemable in precious metals, possesses the same quality.Credit money：Credit money consists of unredeemable currency issued by the government and deposits issued by financial institutions.,5,2.2. Definition of Money,Unit or an object conforming to a reasonable degree to some standard of uniformity, which is employed for reckoning or for making a large proportion of the payment customary in the community concerned, and which is accepted in payment largely with the intention of employing it for making payments. (Paul Einzin, Primitive Money, Oxford: Pergamon Press, 1966 ,pp37),2.3 Properties of Money,6,Characteristics of money,“acceptability ” . What make money is universally acceptable is an interesting question which has fascinated economists over the years. The important that we must draw from this acceptability criterion is that it does not provide a timeless definition of money. Acceptability criterion means that “money” continues to changestability in its value ： moneys ability to function as a store of value does not rely so heavily upon its general acceptability but requires another characteristic which may also be important in making it acceptable。 This is stability in its value。Divisible(易于分割):Divisibility provides that money is available in a variety of denominations to allow large and small transactions.货币应有可分性，使其可方便地用于大额和小额的交易。中国历史上的铜钱,7,4. Easily verifiability, Discernible：Easily to discern false from the genuine5. Durability可储藏性, or lack of perishability, permits money to be held over long periods of time and helps ensure that it can function as a basis for deferred payments. (corn and whisky)6. Convenient (使用越来越方便): convenience includes easy transportation and storage.7. The creditability of issuers of money is the foundation of the credit money 信用货币是以“发行者的信用为基础”,8,Money reduce “Searcher cost” and “transaction cost” Overcome the difficulty of “Double Coincide of wants” (需求的双向巧合) Money reduce the “Menu cost”,Money economy VS. Barter Economy: Functions of money,9,c: the transaction cost of barter cm: cost to verify the quality of money;ccm：the total transaction cost of money economy.If cm0,(the cost to verify money approximate equals to zero) the transaction cost to use money is as same as that in barter economy. Then: Used money as means of payment has advantage to barter economy when n3.,Conclusion: Since precious metals & paper currency have physical advantage to be verified, taking money as means of payment has advantage to barter economy,Money economy Vs. Barter economy: search cost & transaction cost,10,Menu cost: number of relative price,Money reduce “Searcher cost”,11,2.4 Measurement of money,2.4.1 Cases of some countries,12,13,14,15,2.4.2 measurement methods,Sameness: money base（high power money), narrow money, broad money. And broad money including some of non-bank assets. Difference: contents of broad money are different a lot.,Measurement approaches for money (Broaddus, 1975; Walter, 1989) Function-of-money approach （IMF Manual on Monetary and Financial Statistics 货币功能法）the principle for this approach considers the basical function of money and aggregate money with those functions. Empirical approach (Friedman & Schwartz ，1970) money should be a group of financial assets that has stable & tight relation with related variables of macro-economy, such as price, income, which are widely concerned by the society. This group of financial assets then can be defined as “money”.,16,Modern measurement methods (80s-present),17,Weak Separability (弱可分性),If each pair Marginal Rate of Substitution of two assets in a group of assets are independent to all other asset which belong to an other group of assets, then the assets in such group has a property of “weak separability” .,i，j1m，,is independent to (Xm+1,Xn)，,Asset (Xi,Xm) have property of weak separabiity.,18,1. simple-sum monetary aggregates （简单加总）,Normal methods to aggregate money,2. Substitution rate （替代弹性方法, Chetty，1969）,3. Divisia measurement aggregates（DM, 1925 ）,19,20,21,22,1. Friedmans method 弗里德曼的方法：,2. Kenyesan method (凯恩斯传统),Models to Evaluation of aggregated money,3. GrangerSims (1972),4. St. Louis equation （圣路易斯货币主义方程）,23,2.5 Why money exist?,The paradox of academic modelThere is no need of money in many of “Growth m