货币银行学双语复习提纲(3)

MB=C+R

? Federal reserve open market operations公开市场业务

A purchase of bonds by the Fed is called an open market purchase, and a sele of bonds by the Fed is called an open market sale.

? Open market purchase from a bank

Banking system Federal reserve system

Assets liabilities Assets Liabilities Securities -$100 securities +$100 Reserves +$100 Reserves +$100

Because there has been no change of currency in circulation, the monetary base has also risen by $100.

? Open market purchase from the nonbank public

Banking system Federal reserve system Assets liabilities Assets liabilities Reserves +$100 checkable deposits +$100 securities +$100 Reserves +$100

Because increase by the amount of the open market purchase, and the monetary base increase by the same amount.

Nonbank public Federal reserve system

Assets Liabilities Assets Liabilities

Securities -$100 securities +$100 Reserves +$100 Currency +$100

The effect of an open market purchase on reserves depends on whether the seller of the bonds keeps the proceeds from the sale in currency or in deposits.

The effect of an open market purchase on the monetary base, however, is always the same(the monetary base increases by the amount of the purchase) whether the seller of the bonds keeps the proceeds in deposits or in currency. ? Open market sale

Nonbank public Federal reserve system

Assets Liabilities Assets Liabilities Securities -$100 securities -$100 Reserves -$100 Currency +$100

? Shifts from deposits into currency存款向通货的转换 Such a shift will have no effect on the monetary base. ? Discount loans贴现贷款

The net effect on the monetary liabilities of the Fed, and hence on the monetary base.

Multiple deposit creation: A simple model 多倍存款创造 Multiple deposit creation

When the Fed supplies the banking system with $1 of additional reserves, deposits increasse bu a

multiple f this amount--a process. Bank A

Assets Liabilities Reserves +$100 Checkable deposits +$100

Bank A

Assets Liabilities Reserves +$10 Checkable deposits +$100 Loans +$90

Bank B

Assets Liabilities Reserves +$90 Checkable deposits +$90

Bank B

Assets Liabilities Reserves +$9 Checkable deposits +$90 Loans +$81

Bank A

Assets Liabilities Reserves +$10 Checkable deposits +$100 Securities +$90

Whether a bank chooses to use its excess reserves to make loans ot to purchase securities, the effect on deposit expansion is the same.

Chapter 17

Exchange rate

The price of one currency in terms of another.

Transactions conducted in the foreign exchange market determine the rates at which currencies are exchanged, which in turn determine the cost of purchasing foreign goods and financial assets.

Spot transactions即期汇率

The predominant ones, involve the immediate( two-day)exchange of bank deposits. Forward transactions远期汇率

Involve the exchange of bank deposits at some specified future date.

Appreciation

When a currency increases in value. Depreciation

When it falls in value and it worth fewer U.S. Dollars.

Exchange rate are important because they affect the relative price of domestic and foreign goods. When a country’s currency appreciates, the country’s goods abroad become more expensive and

foreign goods in that country become cheaper(holding domestic prices constant in the two countries), Conversely, when a country’s currency depreciates, its goods abroad become cheaper and foreign foods in that country become more expensive.

Exchange rate in the long run ? Law of one price

If two countries produce an identical good, and transportation costs and trade barriers are very low, the price of the good should be the same throughout the world no matter which country produces it.

? Theory of purchasing power parity

It states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries. The theory of PPP is simply an application of the law of one price to national price level rather than to individual prices.

Factors that affect exchange rates in the long run长期中影响汇率的因素 ? Relative price levels

In the long run, a rise in a country’s price level(relative to the foreign price level) causes its currency to depreciate, and a fall in the country’s relative price level causes its currency to appreciate.

? Trade barriers

Increasing trade barriers cause a country’s currency to appreciate in the long run. ? Preferences for domestic versus foreign foods ? Productivity

Exchange rates in the short run

? Comparing expected returns on domestic and foreign assets ? Interest parity condition

? Demand curve for domestic assets

Explaining changes in exchange rates Shift in the demand for domestic assets ? Domestic interest rate, iD

When the domestic interest rate on dollar assets iD rises, the return on dollar assets increases relative to foreign assets, so people will want to hold more dollar assets. The quantity of sollar assets demanded increases. ? Foreign interest rate, iF

When the foreign interest rate iF rises, the return on foreign assets rises relative to dollar assets. People want to hole fewer dollar assets, and the quantity demanded decreases.

An increase in the foreign interest rate i shift the demand curve D to the left and causes the domestic currency to depreciate; a fall in the in the in the foreign interest rate i shifts the demand curve D to the right and causes the domestic currency to appreciate. ? Changes in the expected future exchange rate, Eet+1

A rise in the expected future exchange rate,Eet+1 ,shifts the demand curve to the right and causes an appreciation of the domestic currency, a fall in the expected future exchange rate,Eet+1 , shifts the

demand curve to the left and causes a depreciation of the currency.

百度搜索“77cn”或“免费范文网”即可找到本站免费阅读全部范文。收藏本站方便下次阅读，免费范文网，提供经典小说教育文库货币银行学双语复习提纲(3)在线全文阅读。