曼昆 – 经济学原理29
Summary of Chapter 29 – The Monetary System
关键词：
money: 货币
medium of exchange: 交易媒介
unite of account: 度量单位
liquidity: 流动性
intrinsic value: 内在价值
commodity money: 商品货币
fiat money: 名义货币
currency: 现金货币
demand deposits: 活期储蓄
money supply: 货币供应
government bonds: 国债
reserve requirement: 存储准备金要求
The existence of money makes trade easier. As money flowers from person to person in economy, it facilitates production and trade, thereby allowing each person to specialize in what he or she does best and raising everyone’s standard of living.
Money has three functions in the economy: it is a medium of exchange, a unit of account, and a store of value, which together distinguish money from other assets in the economy. Money that takes the form of a commodity with intrinsic value is called commodity value; money without intrinsic value is called fiat money, which is established as money by government decree.
A central bank is an institution designed to oversee the banking system and regulate the money supply. The central bank has three tools in its monetary toolbox: open-market operations, reserve requirement, and the discount rate.
- Open-market Operation: To increase the money supply, the central bank buys government bonds from the public in the nation’s bond markets; to reduce the money supply, the central bank sells the bonds to the public.
- Reserve Requirement: Reserve Requirements influence how much money the banking system can create with each amount of reserves.
- The Discount Rate: The discount rate is the interest rate on the loans that the central bank makes to banks. A higher discount rate discourage banks from borrowing reserves from the central bank.