《经济学货币金融学英文课件.pptx》由会员分享，可在线阅读，更多相关《经济学货币金融学英文课件.pptx（54页珍藏版）》请在三一办公上搜索。
1、1-1,Why Money and Banking?,Money and Banking is an exciting field of great importanceWhat happens in the banking system and financial market can affect a nations overall economy and peoples daily life greatly in many ways,1-2,Global Financial Crisis,Sep 15,2008:US fourth investment bank Lehman Broth
2、er went bankrupt,Job loss go home SADILY,1-3,Global Finance Crisis,1-4,1-5,“Black Monday”Oct 6,2008,1-6,Job Loss Everywhere!,40,000 Job Loss in Wall Street in the US,to make a living,they are doing acrobatics on the street.In UK,unemployment rate raises to the highest record of 3.8%for the past of n
3、ine years.In Australia,unemployment climbs to 4.8%In Russia,1.7 million is now under unemployment,1-7,Job Fair of 2009 China,1-8,Financial Crisis has caused great concern to the governments in the world-Headache!,What to DO?,C,Chinas 4 trillion yuan to stimulate economy,USs$780 billion stimulus pack
4、age,1-9,Global Financial Crisis,5/29/2008:The fifth investment bank,Bear Stearns(贝尔斯登）was taken by JPMorgen.9/7/2008:Two Government Sponsored Enterprise,Fennie Mae(房利美）and Feddie Mac（房地美)was taken over by US government.9/14/2008,Merrill Lynch(美林）was sell to Bank of America with US$50 billion 9/15/20
5、08:Lehman Brother went bankrupt9/17/2008:The biggest insurance company AIG(American International Group)was taken over by US government and filled with US$85 billion of rescue fund.9/22/2008:Morgan Stanley(摩根斯坦利）and Goldman Sachs（高盛）were transformed to be bank-holding companies.9/26/2008:FDIC(Federa
6、l Deposit Insurance Corporation)was take over by the government.10/6/2009:“Black Monday”of global stock markets10/7/2009:governments of major economies start to cut interest rate to boost the world markets.Over 160 banks became insolvent in the US between 2008 and 2009.,1-10,Facing Financial Crisis,
7、First G-20 Leaders Summit on Financial Markets and World Economy,November 14-15,2008,Washington,D.C.reached a common understanding of the root causes of the global crisis;reviewed actions countries had taken and would take in the future to address the immediate crisis and strengthen growth;agreed on
8、 common principles for reforming their financial markets;launched an action plan to implement those principles and asked ministers to develop further specific recommendations that would be reviewed by leaders at a subsequent summit;and reaffirmed their commitment to free market principles.,1-11,Faci
9、ng Financial Crisis,Second G-20 Summit:April 2,2009,London US$500 billion for the IMF to aid struggling economies,US$250 billion to boost world tradeUS$250 billion for a new IMF overdraft facility,US$100 billion to assist international development banks in lending to poor countries.The next G-20 Sum
10、mit took place on September 2425,2009,Pittsburgh,US a proposal to radically reform the International Monetary Fund One of the major announcements of the meeting was that the group will become the new permanent council for international economic cooperation.This means that the much larger G-20 meetin
11、g will essentially replace the smaller G8,which will continue to meet on major security issues but will carry reduced influence The Battle against Financial Crisis and Economic Recess is stilling going on in many countries!,1-12,What caused the financial crisis?What is the true reason behind?Why one
12、 event in real estate markets can lead to such a huge mess on the financial markets all over the world and go even further to cause a world economy recess?What was wrong in the US economy and global financial system?How great effect was the crisis to the US economy and other economies?Where is the e
13、ventual way out?,1-13,Objectives of the Course,Understand what is Money?Its meaning,types,role,and importance Provide sufficient understanding of the concept of Interest Rate its types,behavior,role,and importance in the economyExpose students to wide variety of Financial Markets their types,functio
14、ns,role and importanceSound understanding of the tools of Monetary Policy,its determinants,conduct,and importance Study Demand for Money,Money&Inflation,Monetarist vs.Keynesian views on these issues,1-14,Course Outline Required Text:Mishkin,F.S.(2006).The Economics of Money,Banking and Financial Mar
15、kets(8th ed.)Approach:80%of the time explain the topics of the day,20%time,open for discussion&class participation,Assessment:Final Exam:70%;Tutorials&Class participation 30%,1-15,About the Author,Frederic S.Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate
16、 School of Business,Columbia University.Since receiving his Ph.D.from the Massachusetts Institute of Technology in 1976,he has taught at the University of Chicago,Northwestern University,Princeton University and Columbia.He has also received an honorary professorship from the Renmin University of Ch
17、ina.His research focuses on monetary policy and its impact on financial markets and the aggregate economyHe has published over 150 papers in journals as American Economic Review,Journal of Political Economy,Econometrica,Quarterly Journal of Economics,Journal of Finance,Journal of Monetary Economics.
18、,1-16,Syllabus,Part I Introduction1.Why study money,banking,and financial markets?2.An overview of the Financial system3.What is money?Part II Financial Markets4.Understanding interest rates5.Behavior of interest rate6.Risk and term structure of interest ratesPart III Financial Institutions9.Banking
19、 firm and management of financial institutions10.Banking industry:structure and competition11.Economic analysis of banking regulation,1-17,Part IV Central Banking and Conduct of Monetary Policy14.Structure of central banks and federal reserve system(Reading Only)15.Multiple Deposit Creation and Mone
20、y supply process16.Determinants of money supply17.Tools of Monetary Policy18.Conduct of Monetary policy:Goals and Targets(Reading Only)Part VI Monetary Theory22.Demand for money23.Keynesian Framework and IS-LM Model25.Aggregate Demand and Aggregate Supply Model,1-18,Sources,www.aw-for more informati
21、on of the bookhttp:/www0.gsb.columbia.edu/faculty/fmishkin/for more about Frederic S.MishkinTo look for data,go to http:/www.federalreserve.gov/econresdata/default.htmEmail:Pin:moneybank,Chapter 1,Why Study Money,Banking,and Financial Markets?,1-20,Financial System,In this Course we will study how F
22、inancial Markets&Institutions work and will explore the role of money in the economy,Financial Markets:Bond MarketStock MarketForeign Exchange MarketOther Markets,Financial Institutions:Chartered BanksTrust&Mortgage Companies Credit UnionsInsurance CompaniesMutual Fund CompaniesOther Companies,1-21,
23、Functions of Financial System,1-22,Why Financial Markets?,Financial Markets help in transferring funds from people with excess funds to people with productive use and ideas but have a shortage of funds.They have significant impact on our daily life as they are involved in huge flow of fund in our ec
24、onomy.Financial markets will affect Efficiency of economy by reallocating the financial resourcesBusiness profitsEconomic well being of other countries,1-23,Well functioning Financial Markets are a key factor in producing high economic growth Poor management of Financial Markets is one reason that m
25、any countries remain desperately poorFinancial market activities also have direct effects onpersonal wealththe behavior of business and consumerscyclical performance of the economy,1-24,1st Market:Bond Market,A Security or a Financial Instrument is a claim on issuers future income or asset(e.g.any f
26、inancial claim or piece of property owned)A Bond is a debt security a promise to make payments periodically for a specific period of time Bond Market is typically important for economic activity.It enables corporations and governments to borrow to finance their activitiesIt is the Bond Market where
27、Interest Rates are determined,1-25,What is Interest Rates?,It is the cost of borrowing or the price paid for the rental of funds.There are number of different interest rates(e.g.mortgage interest rate,car loan rates,house loan rates,and bond rates)Changes in interest rates have important effects on
28、individuals,financial institutions,businesses,and the overall economy.High interest rate discourages consumptionBut encourages savingsCan influence business decisions on same grounds and thus retard economic activity,affect employment and so on and forth,1-26,A further look at Bond Market will be in
29、 Chapter 2,4,5,6,1-27,2nd Market:Stock Market,A place where stocks are traded What is a stock?A share of ownership in a corporationIt is a claim on the earnings&assets of the corporationIt is a way to finance corporations activities,1-28,The stock market is the most widely followed financial market
30、in almost every nationIt is a place where people can get rich or poor quickly.on“Black Monday,Oct 19,1987,DowJones fell by 22%.with the collapse of the internet bubble in 2000,the stock market dropped by over 30%and some stocks dropped more than 90%by late 2002.On Oct 6,2008,DowJones fell by 800 poi
31、nt to the level of below 10,000These fluctuations in stock prices affect peoples wealth and can effect their willingness to spendThe stock market is an important factor in business investment decisions,because the price of shares affects the amount of funds that can be raised by selling newly issued
32、 stock(IPO)to finance investment spending,1-29,US Stock Market:1950-2005,1-30,1-31,China Stock Market:1992-2008,We shall follow up issues on stock market in Chapter 2&7,1-32,3rd Market:Foreign Exchange Market,This market is used to transfer funds from one country to anotherIt is important because it
33、 is the place where exchange rate price of one currency in terms of the other is determined It is relative price of two currency and therefore can be quoted in two ways(e.g.RMB￥/US$or US$/RMB￥)Fluctuations in exchange rate have direct implications for an economyAppreciated RMB is good for imports bu
34、t not so good for exports Strong RMB benefit consumers but exports become more expensive for foreigners,1-33,1-34,Why Banking and Financial Institutions?,Financial system is complex and comprise of many different types of private sector financial institutions Financial Intermediaries institutions th
35、at borrow funds from people who have saved and make loans to other peopleBanks institutions that accept deposits and make loansOther Financial Institutions insurance companies,finance companies,pension funds,mutual funds and investment banksFinancial Innovation in particular,the advent of the inform
36、ation age and e-finance,1-35,Chapter 9:How banks and other financial institution manage their assets and liabilitiesChapter 10:Look at banking industryChapter 11:Understand why bank regulation takes the form it does and what can go wrong in the regulatory process,1-36,Why Study Money and Monetary Po
37、licy?,Money,also referred as Money supply,is defined as anything that is generally accepted in payment of goods and services.Money is linked to the changes in economic variables that are key to the health of the economyMoney and Business Cycle Evidence suggests that money plays an important role in
38、generating business cycles(recession,trough,expansion and peak)Recessions(unemployment)and booms(inflation)affect all of usMonetary Theory ties changes in the money supply to changes in aggregate economic activity and the price level,1-37,Shaded areas represent recessions The rate of money growth ha
39、s declined before every recession,indicating that changes in money might be a driving force behind Business cycle fluctuations,1-38,Money and Inflation,What is Inflation?It is the rate at which price level changes in an economy over a specific period of timeIt affects individuals,businesses,and gove
40、rnment thus regarded as an important problem to be solved,1-39,Price level and money supply generally move together,1-40,Data shows a connection between the money supply and the price level from 1950 to 2005,the price level has increased more than six foldthe price level and the money supply general
41、ly rise together.Inflation is usually caused by continued increase in money supply too much money chasing too few goodsMilton Friedman,a Nobel Laureate:inflation is always and everywhere a monetary phenomenon.,1-41,Money Growth and Inflation:Further Evidence,Anecdotal evidence show thatCountries wit
42、h high growth of money supply have experienced high inflation rates(1992-2004),1-42,Money and Interest Rates,In addition to other factors,money plays an important role in interest-rate fluctuationsInterest rates are the price of moneyPrior to 1980,the rate of money growth and the interest rate on lo
43、ng-term Treasury bonds were closely tiedSince then,the relationship is less clear but still an important determinant of interest rates,1-43,1-44,Money and Monetary Policy,What is Monetary Policy?It is the management of money and interest ratesCentral Bank is the main responsible authority to manage
44、monetary policyMoney affect almost all the economic variablesIt is a matter of concern for politician and policy makers throughout the world,1-45,Monetary Policy,Monetary policy is the management of the money supply and interest ratesCentral bank is responsible for a nations monetary policy Conducte
45、d in the US by the Federal Reserve Bank Conducted in China by the Peoples Bank of China,1-46,How We Will Study Money,Banking,and Financial Markets,A simplified approach to the demand for assetsThe concept of equilibriumBasic supply and demand to explain behavior in financial marketsThe search for pr
46、ofitsAn approach to financial structure based on transaction costs and asymmetric informationAggregate supply and demand analysis,1-47,www.federalreserve.gov/releases/H15,1-48,1-49,1-50,Appendix:Aggregate Output,Prices,&Inflation Rate,Aggregate OutputGross Domestic Product(GDP)=Value of all final go
47、ods and services produced within the economy during a yearAggregate IncomeTotal income from factors of production(land,capital,labor)during the yearNominal vs.Real Nominal=values measured using current pricesReal=quantities,measured with constant pricesAggregate Price LevelGDP Deflator=Nominal GDP/R
48、eal GDPConsumer Price Index(CPI)price of“basket”of goods and services,1-51,One measure of the price level is the GDP deflator GDP deflator=,1-52,Another measure is the Consumer Price Index(CPI)The CPI is an index that compares the price of a marketbasket of goods and services in one period with the
49、price ofthe same(or highly similar)market basket in a base period,currently 1982-1984.The CPI includes some 300 products that are presumably purchased by the typical consumer.CPI for any particular year=price of the most recent market basket in the particular year/price of the same market basket in
50、1982-1984,1-53,Growth Rates and the Inflation Rate,1-54,Inflation is a rise in the general level of prices in an economyThe rate of inflation for a certain year is found by comparing,in percentage terms,that years index with the index in the previous yearExample:the CPI rose from 111 in 2003 to 113
