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1、西方经济学10Todays QuestionsWhy does the Chinese government invest so much money on infrastructure constructions?What measures does the government have to deal with unemployment/inflation?2Fiscal Guidelines ProblemSolutionPolicy toolsUnemployment(recession)Increase aggregate demandIncrease government spe
2、nding Cut taxesInflationReduce aggregate demandCut government spending Increase taxes31.The Objectives of Economic PoliciesFull EmploymentStable PricesContinuous growthBalanced international account42.Fiscal PolicyFiscal policy is the use of revenue collection and government spending to influence th
3、e economy.The fiscal system is mainly comprised of two aspects,i.e.fiscal revenue and government spending.5Fiscal RevenueTaxes:Non-tax revenues:In-the-budget revenueOff-the-budget revenue(e.g.land-transferring fees,which is a crucial source of funds for local governments).Fiscal Revenue of China(200
4、7)Source:China Statistical Yearbook 20086Government spending Government purchases:Arms purchase,administrative expenses,payment to government officials,public projects,etc.Transfer payment.Social security,government aid,and allowances.7Main Items of National Government Expenditure(2007)8Fiscal Defic
5、it and Fiscal SurplusDefinition:Fiscal deficit:revenue spendingApproaches of Fiscal Policies:Balancing approach:Government should not balance spending against revenue.Discretionary approach:Government should decide spending on the basis of need,not balancing.9Fiscal PoliciesAutomatic adjustment:Tax
6、change;government spending;prices of agricultural products.Initiative adjustment:Expansionary policies:Tax cut,government spending expansionsContractionary fiscal policies:Tax rate raise,government spending reductionCompensatory fiscal policy:a combined use of the two types of policies.10Potential P
7、roblems of Discretionary Fiscal PoliciesTime elapse.Uncertainty.Uncertainty in the size of the multipliers.Uncertainty in the time of policy functioning.Uncertainty of the economic environment.11The Meaning Of Money Money is the set of assets in an economy that people regularly use to buy goods and
8、services from other people.Money vs Currency Money vs Wealth Money vs Income12The Functions of Money Money has three functions in the economy:Medium of exchange Standard of value Store of value13The Functions Of Money:Medium Of Exchange A medium of exchange is an item that buyers give to sellers whe
9、n they want to purchase goods and services.anything that is readily acceptable as payment.14The Functions of Money Standard of value A Standard of value is the yardstick people use to post prices and record debts.Store of Value A store of value is an item that people can use to transfer purchasing p
10、ower from the present to the future.15The Functions of Money Liquidity Liquidity is the ease with which an asset can be converted into the economys medium of exchange.16The Kinds of Money Commodity money takes the form of a commodity with intrinsic value.Examples:Gold,silver,cigarettes.Fiat money is
11、 used as money because of government decree.It does not have intrinsic value.Examples:Coins,currency,check deposits.17Money in the Canadian Economy The quantity of money circulating in the economy is called the money stock Currency is the paper bills and coins in the hands of the public.Demand depos
12、its are balances in bank accounts that depositors can access on demand by writing a check.18The Simple Case of 100-Percent-Reserve Banking Deposits that banks have received but have not loaned out are called reserves If all deposits are held as reserves,this would be called 100-percent-reserve banki
13、ng The financial position of the bank can be expressed with a T-accountFirst National BankFirst National BankAssetsLiabilitiesReserves$100Deposits$10019Money Creation with Fractional-Reserve Banking Reserves are deposits that banks have received but have not loaned out.In a fractional-reserve bankin
14、g system,banks hold a fraction of the money deposited as reserves and lend out the rest.The fraction of total deposits the bank holds as reserves is called the reserve ratio.20Money Creation with Fractional-Reserve Banking When a bank makes a loan from its reserves,the money supply increases.The mon
15、ey supply is affected by the amount deposited in banks and the amount that banks loan.21Money Creation with Fractional-Reserve Banking Deposits into a bank are recorded as both assets and liabilities.The fraction of total deposits that a bank has to keep as reserves is called the reserve ratio.Loans
16、 become an asset to the bank.22Money Creation with Fractional-Reserve Banking This T-Account shows a bank that accepts deposits,keeps a portion as reserves,and lends out the rest.It assumes a reserve ratio of 10%.AssetsLiabilitiesFirst National BankReserves$10.00Loans$90.00Deposits$100.00Total Asset
17、s$100.00Total Liabilities$100.0023Money Creation with Fractional-Reserve Banking When one bank loans money,that money is generally deposited into another bank.This creates more deposits and more reserves to be lent out.When a bank makes a loan from its reserves,the money supply increases.24The Money
18、 Multiplier How much money is eventually created in this economy?The money multiplier is the amount of money the banking system generates with each dollar of reserves.25The Money MultiplierAssetsLiabilitiesFirst National BankReserves$10.00Loans$90.00Deposits$100.00Total Assets$100.00Total Liabilitie
19、s$100.00AssetsLiabilitiesReserves$9.00Loans$81.00Deposits$90.00Total Assets$90.00Total Liabilities$90.00Money Supply=$190.00!26The Money MultiplierAssetsLiabilitiesSecond National BankReserves$9.00Loans$81.00Deposits$90.00Total Assets$90.00Total Liabilities$90.00AssetsLiabilities Third National Bank
20、Reserves$8.10Loans$72.90Deposits$81.00Total Assets$81.00Total Liabilities$81.00Money Supply=$271.00!27The Money Multiplier How much money will eventually be created in the economy?Original deposit=$100.00First National lending=$90.00=.9 x$100.00Second National lending=$81.00=.9 x$90.00Third National
21、 lending=$72.90=.9 x$81.00Total money supply =$1000.00 28The Money Multiplier The money multiplier is the reciprocal of the reserve ratio:Money multiplier=1/R With a reserve requirement,R=10%or 1/10,The money multiplier is 10.The higher the reserve ratio,the less of each deposit banks loan out,and t
22、he smaller the money multiplier29The Federal Reserve System Federal Reserve Banks The core of the Federal Reserve System consists of 12 Federal Reserve banks,located in the various regions of the country.Each of these banks acts as a central banker for the private banks in its region.30The Federal R
23、eserve System Functions:Clearing checks between private banks.Holding bank reserves.Providing currency.Providing loans.The Board of Governors The Fed Chairman 31Monetary Tools Reserve requirements By changing the reserve requirement,the Fed can directly alter the lending capacity of the banking syst
24、em.A change in the reserve requirement causes:A change in excess reserves.A change in the money multiplier.32Monetary Tools The Discount Rate This is the interest rate the Fed charges for lending reserves to private banks.There are three possible sources of last-minute reserves.Turn to other banks f
25、or help.The sale of securities.Borrow reserves from the Federal Reserve System.(Discounting)33Monetary Tools Open-Market Operations Open-Market Operations are the principal mechanism for directly alter the reserves of the banking system.Buying Bonds P r i Ms Selling Bonds P r i Ms34Monetary Policy G
26、uidelines ProblemSolutionPolicy toolsUnemployment(recession)Increase aggregate demandBuy bondsLower discount rateReduce reserve requirementInflationReduce aggregate demandSell bondsRaise discount rateIncrease reserve requirement35Monetary PolicyMonetary policy is the process by which the government,
27、central bank,or monetary authority of a country controls(i)the supply of money,(ii)availability of money,and(iii)cost of money or rate of interest,in order to attain a set of objectives oriented towards the growth and stability of the economy.36How Does the Central Bank Control the Supply of Money?C
28、ontrolling interest ratesMaking open market transactionsChanging legal reserve rates37How Does Monetary Policy Change the EconomyMoney supply-interest rate-investment -national income.38Exercises1.Which of the following could cause a recession?AA.A decline in aggregate demandB.A decline in unemploym
29、entC.An increase in aggregate supplyD.An increase in government spending392.When calculating aggregate demand,government expenditure:DA.Includes income transfersB.Includes expenditures by the federal government but not state and local governmentC.Represents the largest component of aggregate demand
30、for the United StatesD.Includes spending by federal,state and local governments on goods and services403.According to Keynes,which of the following is possible at the intersection of aggregate supply and aggregate demand?BA.Full employment or high levels of unemployment,but not inflationB.Inflation,
31、full employment or high levels of unemploymentC.Inflation and high levels of unemployment,but not full employmentD.Full employment,but not high levels of unemployment or inflation414.According to Keynes,all of the following are true except:DA.Aggregate demand is typically at the wrong level to assur
32、e full employmentB.Government spending or taxes should be used to expand or contract the economyC.Fiscal policy may be necessary to assure the correct level of aggregate demandD.Fiscal policy is not likely to be effective if aggregate demand is inadequate425.A tax cut or government spending increase intended to shift aggregate demand to the right is known as:CA.Aggregate demand excessB.The GDP gapC.Fiscal stimulusD.Fiscal restraint43此课件下载可自行编辑修改，仅供参考！此课件下载可自行编辑修改，仅供参考！感谢您的支持，我们努力做得更好！谢谢感谢您的支持，我们努力做得更好！谢谢