20 1 1 65438+ February
Review the thinking questions after class.
chapter one
Why does the emergence of currency reduce transaction costs?
In early human society, barter was the main transaction mode. There are many defects in this trading model, which makes its transaction cost rise continuously. It is manifested in three aspects: first, the search cost that people keep happening in order to find the transaction object; The second is to use resources to bypass the opportunity cost of other investment income lost in the exchange; Third, the direct cost of exchange increases.
How to understand Marx's statement about the essence of money?
Marx described money from its origin, thinking that money is nothing more than a commodity separated from commodities and fixed as a universal equivalent, reflecting a certain social production relationship.
What's the point of dishonoring the credit monetary system?
(1) The credit currency system is a currency system in which cash or bank notes are used as the bookkeeping base currency. After World War II, a monetary system centered on the US dollar was formed. The dollar is linked to gold, and the currencies of all countries are linked to the dollar. Later, the United States stopped the exchange of gold with central banks and the implementation of the policy of non-monetization of gold, and the credit currency system was widely accepted. (2) Under this monetary system, paper money is issued by the central bank authorized by the government, which is endowed with unlimited repayment ability by law and has the nature of compulsory circulation. The government only sets the value of money, not the price of gold and silver. Paper money cannot be cashed, and its issuance is controlled by the central bank and is not restricted by gold and silver. (3) It means that the money supply is not controlled by gold and silver, and can be appropriately adjusted according to market demand. Paper money has nothing to do with quantitative metals, and its foreign exchange rate is not affected by the international market price. However, the problem of inflation often puzzles governments and people all over the world.
chapter two
On the main forms of credit
Commercial credit and bank credit are two main forms of economy. The typical form of commercial credit is the credit provided by industrial and commercial enterprises to industrial and commercial enterprises that purchase goods on credit. It is the foundation of the current credit system.
Bank credit is the lending behavior of banks or other financial institutions in the form of deposits, discounts and other business forms. It is developed on the basis of commercial credit and constitutes the main body of modern economic and social credit system together with commercial credit. In addition, there are international credit, consumer credit, international credit, private credit and other forms.
On the Function and Limitation of Commercial Credit
Function: (1) Economic lubrication and growth. Commercial credit directly serves the production and circulation of commodities, ensures and accelerates the smooth progress of its process and promotes the development of commodity economy. At the same time, it is conducive to direct docking between the supply and demand sides, strengthening and coordinating the links between enterprises, and promoting the balance between production and demand. (2) Adjusting the surplus and deficiency of funds among enterprises, improving the efficiency of capital use and saving transaction costs is also the simplest way to create credit circulation tools. (3) The contractualization of commercial credit makes spontaneous and scattered commercial information orderly, which is conducive to the participation and support of bank credit and strengthens the order of market economy.
Limitations: (1) Strictly oriented commercial credit is a form of credit that occurs between enterprises and is directly related to commodity trading, and is strictly restricted by commodity flow. (2) The goods or funds provided by industrial scale binding commercial credit are based on the scale of industrial capital. (3) The short-term commercial credit of the financing term is mainly provided by industrial and commercial enterprises, and its funds cannot be occupied by others for a long time. (4) Instability of credit chain Commercial credit is provided by industrial and commercial enterprises. The interruption of a certain link will lead to the interruption of the whole debt chain and trigger a debt crisis. (5) Increased the difficulty of government macro-control. Commercial credit is carried out spontaneously and dispersedly by industrial and commercial enterprises. It is difficult for the country to directly control the scale and development direction of the box. If underestimated, it will easily lead to credit expansion, if overestimated, it will lead to deflation.
Why does bank credit replace commercial credit and become the main form of modern credit?
Due to the defects of commercial credit, it cannot fundamentally change the allocation and layout of social funds and resources, nor can it meet the needs of market allocation and rational layout of economic resources, so it cannot become the center of modern credit system.
Bank credit refers to the lending behavior of banks or other financial institutions with various departments of the national economy in the form of deposits, discounts and other currencies. It is a higher-level credit developed on the basis of commercial credit and has the following characteristics:
(1) The subject of bank credit is different from commercial credit. The debtors of bank credit are enterprises, governments, families and other institutions, and the creditors are financial institutions such as banks. (2) The object of bank credit is a single form of monetary capital. On the one hand, it can effectively gather the hot money in the society, the temporarily idle capital in the process of enterprise reproduction and the monetary capital of currency owners, convert the monetary savings of all social strata into capital, and form a huge loan capital, thus overcoming the limitations of commercial credit in quantity. On the other hand, bank credit is provided in the form of a single currency, which is not limited by the direction of commodity circulation, thus overcoming the limitations of commercial credit in the direction of provision. (3) Bank credit is an intermediary credit, the main body is banks and other financial institutions, and it only acts as a credit intermediary in credit activities. Most of the monetary funds provided by banks to borrowers come from deposits. Savings and other means from all walks of life. As the concentrator of idle capital rather than the end user, banks must apply it to the needs of social reproduction through loans or investments. (4) The dynamics of bank credit and industrial capital are not completely consistent. It is an independent movement of loan capital, which may be inconsistent with the dynamics of industrial capital.
chapter three
The concepts of simple interest and compound interest
Simple interest means that only the principal interest is calculated during the loan period, and no interest is calculated. Compound interest will incorporate the previous interest into the principal for unified calculation.
The basic form of interest is compound interest, because simple interest method's advantage lies in its simple calculation, but it does not fully consider the time value of funds. The compound interest method fully considers the time value of funds and is more scientific than simple interest method.
Key factors affecting interest rates
The main factors are: (1) the basic factors that determine the interest rate. Interest comes from profit and is a part of profit. The average profit rate is the basic factor to determine the interest rate. (2) the supply and demand of monetary funds. As a special commodity, loan funds are also affected by the relationship between supply and demand. When the loan funds are in short supply, the interest rate will increase and the borrower will get more profits. On the contrary, when the supply exceeds the demand, the interest rate drops and the borrower can pay less interest. (3) Economic cycle. In general, the interest rate level is mainly determined by the average profit rate and the relationship between market supply and demand. However, in the obvious period of economic crisis, most enterprises urgently need a lot of funds to survive, and the demand for funds has increased sharply. At the same time, in order to ensure the safety of funds, depositors are reluctant to deposit, so the contradiction between supply and demand is prominent and interest rates soar. In the post-crisis depression period, industrial and commercial enterprises have a large amount of surplus funds and a large supply of funds. At the same time, because there is no need to expand reproduction, the demand for funds is small, which leads to a decline in interest rates. (4) Price level loan funds reflect the purchasing power of money directly related to the price level. For the borrower, when the price rises and the currency depreciates, if the nominal interest rate remains unchanged, it means that the real interest rate falls, and when it is returned, it means that the actual amount of money returned is reduced, benefiting from it, while the lender is losing money. (5) Economic Policy Because interest rates have a great impact on the economy, governments of all countries influence market interest rates through interest rates set by central banks, adjust the supply and demand of funds and adjust the economic structure and speed of economic development according to their own economic development and the objectives of monetary policy. (6) Other influencing factors: the international market interest rate level. Bank operating costs and interest rate management system are intertwined to affect the change of interest rate.
What are the theoretical explanations for the term structure of interest rates?
The term structure of interest rate refers to the relationship between the yields of financial assets with the same default risk but different terms.
The basic idea of (1) expectation theory is that the yield of long-term bonds should be equal to the geometric average of current short-term interest rates and future short-term interest rates. (2) The market segmentation theory holds that the bond markets with different maturities are completely independent and separated, so the interest rates of bonds with different maturities are completely determined by the supply and demand of bonds and are not affected by the yields of bonds with other maturities. (3) Term selection and liquidity premium theory combine the above two theories, and think that the interest rate of long-term bonds is equal to the average expected short-term interest rate before the maturity of such bonds plus the term premium of such bonds that changes with supply and demand.
On Keynes's liquidity preference theory
The so-called liquidity preference refers to a psychological tendency of the public to hold monetary assets. Keynes thought: (1) interest rate is a pure monetary phenomenon. He believes that interest is the return of giving up money and sacrificing liquidity in a certain period of time. Interest rate is determined by the relationship between supply and demand of money in the money market, and its change is the result of the change of supply and demand. (2) Interest rate is determined by the relationship between money supply and demand, in which money supply is an exogenous variable and controlled by the central bank. Money demand is an endogenous variable, which is determined by people's liquidity preference. As a special asset form, money has complete liquidity and minimal risk. (3); There are three motivations for liquidity preference: trading motivation, prevention motivation and speculation motivation. Among them, the speculative motive is inversely proportional to the interest rate. (4) When the interest rate drops to a certain extent, there will be a liquidity trap and unlimited demand for money.
chapter five
Compare the advantages and disadvantages of direct finance and indirect finance.
There are two ways for the fund surplus department to provide funds to the fund shortage department: first, direct financing, through the financial market, to buy securities directly issued by the fund shortage department; The second is indirect financing, in which the surplus departments give money to financial intermediaries, and then the financial intermediaries indirectly finance the shortage departments.
Advantages of direct financing: (1) rapid financing (2) promoting investment (3) developing various forms of credit (4) dispersing risks of financial institutions in the process of financing (5) improving the utilization rate of funds.
Disadvantages: (1) The risk of fund suppliers is high; (2) Limited financing scale; (3) In countries or regions with underdeveloped financial markets, the liquidity of direct financial securities is weak and low.
The advantages of indirect financing are (1) flexibility and convenience (2) high security (3) strong liquidity (4) large scale and abundant funds. The disadvantage is the limitation of (1) indirect financing. First of all, the direct contact between the supply and demand sides of funds was cut off. Reduce investors' concerns about enterprise production, and reduce the pressure and binding force of fund raisers on the use of funds. In addition, the intermediary has to charge a certain fee, which increases the financing cost. (2) Disadvantages of indirect finance First of all, the term structure of investment and savings is seriously mismatched, and the sharing mechanism of financial risks is also asymmetric, so banks have to bear the risk of loan default. In addition, the issuance of bank loans tends to amplify economic fluctuations: when the economy expands, bank loans may expand rapidly, overheating the economy. When the economy tightens, bank loans contract faster, which increases the degree of economic tightening.
Compare the money market with the capital market.
Money market refers to a short-term financial market with financial assets with a term of less than one year as the transaction target. The main function is to keep the liquidity of financial assets so as to convert them into real money at any time. There is generally no formal organization in the money market, and all transactions, especially those in the secondary market, are conducted through telecommunications. The large volume of market transactions is one of the important characteristics that distinguish the money market from other markets.
Capital market refers to the market where financial assets with a maturity of more than one year are traded. Including the bank's long-term deposit and loan market and securities market. The difference between money market and money market is: (1) different term, (2) different function and (3) different risk.
Compare the primary market with the secondary market and try to describe the relationship between them.
The primary market is to trade new securities that have not been issued before, also known as the issuance market. Its main function is to raise financial capital to support new investments in construction, equipment and inventory. The secondary market deals in issued securities, also known as the circulation market. Mainly to provide liquidity for securities investors and turn financial instruments into cash channels.
The transaction volume of the secondary market is much larger than that of the primary market, but it does not support new investment. The primary market is closely connected with the secondary market, which is an important guarantee for the primary market, providing liquidity for financial assets and attracting investors. The primary market is the foundation and premise. Without the issuance of the primary market, the securities trading in the secondary market cannot be started.
Chapter vi
Types and characteristics of money market instruments
Money market instruments include: short-term treasury bills, bank acceptance bills, large negotiable certificates of deposit, commercial paper and repurchase agreements. Features: short trading cycle, strong liquidity and low risk.
Calculation of stock market price and its influencing factors
The stock market price is based on the intrinsic value of the stock and fluctuates around the intrinsic value. According to the present value theory, the intrinsic value of stock is calculated by discounting the stock income.
The factors that affect prices include: (1) macroeconomic factors, including economic growth, economic boom cycle, interest rate, fiscal revenue and expenditure, money supply and prices. (2) the industry in which the company is located. The industry in which the company is located has good development prospects and is attractive to investors. On the contrary, the return on investment is low. (3) Operating conditions The operating efficiency and performance of the company directly affect the profitability and profitability of the company, so the economic situation of the company is also a key to judge the fluctuation of the stock price. (4) Psychological factors Most people are optimistic about the stock market, which will push the stock price up, and vice versa.
Compare stocks and bonds
Difference: (1) The issuer is different. No matter the state, local governments or enterprises can issue bonds, but shares can only be issued by joint-stock enterprises. (2) The interest rates of bonds with different income stability have been determined at the time of purchase, and fixed interest can be obtained at maturity. The dividend yield of stocks is generally uncertain before purchase, and the dividend income depends on the income and dividend policy of the joint-stock company. (3) The capital preservation ability is different. The principal can be recovered when the bond matures, but the principal cannot be redeemed after the stock investment. (4) Different economic interests. Stocks and bonds are two different kinds of securities, which reflect different economic interests. Bonds represent only a creditor's right to the company, while stocks represent the ownership of the company. With different ownership relations, bondholders have no right to ask about the operation and management of the company, while stock holders directly or indirectly participate in the operation and management of the company.
Factors affecting bond prices
Mainly: (1) the relationship between supply and demand in the bond market. When the supply exceeds demand in the bond market, the bond price falls. On the contrary, it will rise. (2) Social and Economic Development When the economy develops rapidly, the bond price tends to decline, and vice versa. (3) Inflation When inflation is serious, the government has no corresponding subsidy measures, so the demand for fixed bonds in coupon rate decreases, and the bond price drops. On the contrary, the price rises or stabilizes.
Others, such as fiscal revenue and expenditure and monetary policy, will also affect bond prices. In short, the bond price is based on its future earnings, influenced by a series of factors and determined by market supply and demand.
Chapter 9
Combined with China's monetary system, the characteristics of credit currency are explained.
(1) enforces universal equivalence. Credit currency itself has no intrinsic value, and it is issued with national credit guarantee and forced to circulate. Credit currency plays the role of universal equivalent in circulation and performs various functions of currency. (2) Credit currency is debt currency. In essence, credit currency is a disposable commodity with intrinsic value in the market. Credit currency is the liability of the issuing bank. (3) Credit currency is a currency management country that authorizes the central bank to monopolize the right to issue banknotes. It is legally stipulated that banknotes issued by the central bank are legal tender and have unlimited solvency in China.
Factors affecting the creation of deposits in commercial banks
It mainly includes: (1) original deposit (2) legal deposit reserve system (3) excess reserve (4) cash loss and loss (5) current deposit converted into time deposit.
Characteristics of secondary banking system
(1) The central bank has no direct business dealings with individuals and enterprises, but generally has direct asset-liability business with commercial banks, and then commercial banks handle business related to individuals and enterprises. (2) The central bank monopolizes the right to issue money. As a special enterprise dealing in credit, commercial banks only have the functions of credit intermediary and credit creation, but have no right to issue cash. Although the central bank has the right to issue money, it does not have direct business dealings with individuals and enterprises. (3) The central bank manages the debt business and asset business of commercial banks by implementing the deposit reserve system. The ability of commercial banks to provide deposit currency is constrained by the central bank. (4) There is a deposit creation mechanism. The process of central bank's debt amplification is the mechanism of deposit derivation. Its existence makes the money supply influenced by the actions of the central bank, commercial banks and the public.
Under the secondary banking system, the asset business scale and the amount of base currency of the central bank determine the asset business scale and the amount of deposit currency of commercial banks. The former changes first, and the latter changes with it.
How does the asset-liability business of the central bank affect the reserves of commercial banks?
(1) According to the principle of balance sheet preparation, the amount of reserve deposits in the commercial banking system is determined by the changes of various projects. (2) The increase of the central bank's asset business leads to the increase of the reserve of the commercial banking system, and vice versa. (3) The increase in the liabilities of the central bank will reduce the reserves of commercial banks.
Chapter 10
Compare Keynes's and Friedman's money demand theories and analyze their policy implications.
Keynes's theory of money demand, also known as liquidity preference theory, shows that people would rather hold cash and demand deposits that are highly liquid but cannot generate profits than stocks and bonds that can generate profits but are difficult to realize. This liquidity preference constitutes the demand for money. He believes that money supply can adjust money demand not only through price changes, but also through interest rate changes.
Friedman believes that the theory of money quantity is not about output, money income or price, but about money demand, and it is a theory that defines what factors determine money demand. The main feature of his theory is to emphasize the leading role of permanent income in money demand. In the long run, the demand for money will inevitably increase with the steady increase of permanent income. He believes that the change of cash balance will affect generalized assets and interest rates, thus transmitting the change of money quantity to the demand for finished products.
Policy Proposition: Keynes proposed that in the case of insufficient effective social demand, the state can expand the money supply, reduce interest rates, and encourage entrepreneurs to expand investment to increase employment and output. Friedman advocated the monetary policy of stabilizing the money supply to prevent money itself from becoming the cause of economic fluctuations.
According to J?tunheimr model, try to describe the factors that affect the money supply.
(1) When only the statutory deposit reserve ratio is considered, the monetary multiplier of narrow money is not understood. . .
The influence of financial innovation on the definition and grade of currency
(1) The influence of financial innovation on the definition of money lies in changing the composition of assets as a medium of exchange and highly liquid assets. (2) Financial innovation varieties have the function of exchange media, and their appearance further expands the content of M 1 and M2. These tools often have both the function of trading medium and the ability to pay. (3) Financial innovation not only enriches the contents of currencies at all levels, greatly increases the types of currencies at all levels, but also improves the liquidity of currencies, making the original clear dividing line between all levels increasingly blurred. (4) The influence of financial innovation on the division of money levels has also changed the relationship between money at all levels and economic operation, which has shifted the focus of the central bank's money supply regulation.
Bankruptcy reorganization protection
The meaning and types of inflation
Definition: under the condition of the circulation of value symbols, the phenomenon of currency depreciation and price increase caused by excessive supply of money. Inflation is usually a continuous and obvious rising process of the overall price level in a certain period of time. What needs to be clear is that (1) inflation does not mean a one-off or short-term rise in the overall price level, but a process of "continuous rise" in prices. (2) Inflation refers to the rise of the "general price level", and the local price increase of goods or services cannot be regarded as inflation. (3) Inflation is a significant increase in the overall price level. (4) Inflation is a unique phenomenon in the circulation of value symbols. The sufficient condition is that the currency is over-issued, and the necessary condition is that the price rises.
Type: according to whether the market mechanism plays a role, it can be divided into explicit inflation and invisible ~
According to the speed of price increase, it can be divided into crawling inflation, moderate inflation, pentium inflation and hyperinflation.
The direct cause of inflation, the deep-seated reason.
There are many specific reasons for inflation in different countries in different periods, but the most direct reason is excessive money supply.
The common deep-seated reasons for inflation are: (1) Demand-driven inflation refers to the type of inflation in which the total social demand exceeds the total social supply, resulting in insufficient supply of goods and services and rising prices. (2) Cost-driven theory According to this theory, the root cause of inflation is not excessive aggregate demand, but the rising production cost of aggregate supply. (3) Supply-mixed pushers combine supply and demand and think that inflation is driven by demand and cost. (4) The viewpoint of structural inflation is due to some characteristics of economic sector structure in different countries. When the demand or cost of some industries and departments changes, it will often affect other departments through the process of cross-departmental alignment, which will lead to price increases. (5) Expected inflation refers to people's expectation of inflation under the psychological effect of inflation expectation, and take various measures to protect themselves from losses.
Influence of inflation on output, employment and wealth redistribution
There are three main views on the impact of inflation on output: (1) The promotion theory holds that the real economy usually has the problem of insufficient effective demand, which makes the actual output lower than the potential output, so the implementation of expansionary macroeconomic policies can effectively promote the growth of output while prices rise. (2) the theory of promoting recession holds that although inflation can promote economic growth in the early stage, in the long run, inflation will not only fail to promote economic growth, but will reduce efficiency and hinder economic growth. (3) Neutralism holds that inflation has little effect on economic growth, and there is no necessary connection between them.
Chapter XII
Main contents and basic characteristics of monetary policy
How to choose the ultimate goal of monetary policy
How to understand the relationship between the ultimate goals of monetary policy
What are the general policy tools and their mechanisms?
The role of Keynesian school and monetarism in the transmission of monetary policy
Transmission channel of monetary policy
Chapter 13
Characteristics of foreign exchange and types of exchange rates
Four main items in the balance of payments
Factors determining the appropriate scale of foreign exchange reserves
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