考试题型以及分数分布：
一、选择题：1’*20=20’
二、名词解释：4’*5=20’
三、简答题：8’*5=40’
四、论述题：20’*1=20’
重点制作思路：
1.考虑到时间关系，抓大放小
2.结合老师提及复习内容进行预测
3.以理顺书本架构为主，看到一个知识点猜一下可能会出什么题
The economics of money, banking and financial markets----by Kyle Chapter1：Why Study Money, Banking, and Financial Markets？
（本章了解一下这个问题即可，最多考一下选择）
Answer：
?To examine how financial markets such as bond and stock markets work
?To examine how financial institutions such as banks work
?To examine the role of money in the economy
Chapter2：An Overview of the Financial System
1.Function of Financial Markets
?Perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds ?Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities.
?Promotes economic efficiency by producing an efficient allocation（分配）of capital（资金）, which increases production
?Directly improve the well-being of consumers by allowing them to time purchases better
?
2.Structure of Financial Markets
?Debt and Equity （普通股）Markets
?Primary and Secondary Markets
?Exchanges and Over-the-Counter (OTC不通过交易所而直接售给顾客的) Markets ?Money and Capital Markets（货币和资本市场）
3. Financial Market Instruments(要能举出例子，很可能考选择)
Money markets deal in short-term debt instruments
Capital markets deal in longer-term debt and equity instruments.
4.Internationalization of Financial Markets（重点，选择、名词解释都有可能）
?Foreign Bonds & Eurobond?
?Eurocurrencies & Eurodollars?
?World Stock Markets
5．Function of Financial Intermediaries: Indirect Finance
（记一下金融中介机构的功能，交易成本很可能考名词解释）?Lower transaction costs (time and money spent in carrying out financial transactions).
?Reduce the exposure of investors to risk
?Deal with asymmetric 不对称information problems
?Conclusion:
Financial intermediaries allow “small” savers and borrowers to benefit from the existence of financial markets.
6. Types of Financial Intermediaries（会分类即可）
Depository institutions
Contractual saving institutions
Investment intermediaries
7.Regulation of the Financial System
?To increase the information available to investors:
?To ensure the soundness 健康稳固of financial intermediaries
Chapter3：What Is Money?
1.Meaning of Money（即definition，必考名词解释！！）
?Money (or the “money supply”): anything that is generally accepted in payment for goods or services or in the repayment of debts.
2.Functions of Money（重点）
?Medium of Exchange:
? A medium of exchange must
?Unit of Account:
?Store 储藏of Value:
3.Evolution of the Payments System
?Commodity 商品Money
?Fiat 法定Money
?Checks 支票Electronic Payment (e.g. online bill pay).
?E-Money (electronic money):
4.Measuring Money （重中之重，M1/M2都很有可能考名词解释）
?Construct monetary aggregates using the concept of liquidity:
（构建货币总量使用流动性的概念）
?M1 (most liquid assets)= currency + traveler’s checks + demand deposits + other checkable deposits.
?M2 (adds to M1 other assets that are not so liquid) = M1 + small denomination time deposits + savings deposits and money market deposit
accounts + money market mutual fund shares.
Chapter 4：Understanding Interest Rates
1.measuring interest rates:Present Value(很可能考察名词解释)
A dollar paid to you one year from now is less valuable than a dollar paid to
you today
Simple Present Value：PV=CF/(1+i)n次方
2.Four Types of Credit Market Instruments
?Simple Loan
?Fixed Payment Loan
?Coupon Bond 附票债券
?Discount Bond 贴现债券
3.Yield to Maturity（重点，很可能名词解释）
?The interest rate that equates the present value of cash flow payments received from a debt instrument with its value today
计算4种不同信用工具外加Consol or Perpetuity（金边债券或永久债券）的YM 4. Yield on a Discount Basis（了解即可）
Current Yield当期收益率
Yield on a Discount Basis 折价收益率
Rate of Return 收益率
5.Rate of Return and Interest Rates（收益率与利息率的distinction）
?The return equals the yield to maturity only if the holding period equals the time to maturity
? A rise in interest rates is associated with a fall in bond prices, resulting in a capital loss if time to maturity is longer than the holding period
?The more distant a bond’s maturity, the greater the size of the percentage price change associated with an interest-rate change
?The more distant a bond’s maturity, the lower the rate of return the occurs as
a result of an increase in the interest rate
?Even if a bond has a substantial initial interest rate, its return can be negative if interest rates rise
6.Interest-Rate Risk
?Prices and returns for long-term bonds are more volatile than those for shorter-term bonds
?There is no interest-rate risk for any bond whose time to maturity matches the holding period
7. Real and Nominal Interest Rates （重点，很可能考察简答题） ? Nominal interest rate makes no allowance for inflation ? Real interest rate is adjusted for changes in price level so it more accurately reflects the cost of borrowing ? Ex ante real interest rate is adjusted for expected changes in the price level ? Ex post real interest rate is adjusted for actual changes in the price level 8. Fisher Equation （重点考察）
Chapter5：The Behavior of Interest Rates
1. Determining the Quantity Demanded of an Asset
? Wealth: the total resources owned by the individual, including all assets ? Expected Return: the return expected over the next period on one asset relative to alternative assets
? Risk: the degree of uncertainty associated with the return on one asset relative to alternative assets
? Liquidity: the ease and speed with which an asset can be turned into cash relative to alternative assets （流动性很有可能考名词解释）
2.Theory of Asset Demand （必考，死活都得背下来）
Holding all other factors constant:
1. The quantity demanded of an asset is positively related to wealth
2. The quantity demanded of an asset is positively related to its expected
return relative to alternative assets
3. The quantity demanded of an asset is negatively related to the risk of
its returns relative to alternative assets
4. The quantity demanded of an asset is positively related to its liquidity
relative to alternative assets
3. Supply and Demand for Bonds （见到看一下图）
Market Equilibrium
4.
Shifts in the Demand for Bonds = nominal interest rate = real interest rate = expected inflation rate When the real interest rate is low,there are greater incentives to borrow and fewer incentives to lend.The real inter e r r e i i i i ππ=+est rate is a better indicator of the incentives to borrow and lend.
? Wealth: in an expansion with growing wealth, the demand curve for bonds shifts to the right
? Expected Returns: higher expected interest rates in the future lower the expected return for long-term bonds, shifting the demand curve to the left ? Expected Inflation: an increase in the expected rate of inflations lowers the expected return for bonds, causing the demand curve to shift to the left
? Risk: an increase in the riskiness of bonds causes the demand curve to shift to the left
? Liquidity: increased liquidity of bonds results in the demand curve shifting right
5．Shifts in the Supply of Bonds
? Expected profitability of investment opportunities: in an expansion, the supply curve shifts to the right
? Expected inflation: an increase in expected inflation shifts the supply curve for bonds to the right
? Government budget: increased budget deficits shift the supply curve to the right
6.
The Liquidity Preference Framework （重中之重）
Keynesian model that determines the equilibrium interest rate
in terms of the supply of and demand for money.
There are two main categories of assets that people use to store their wealth: money and bo s s d d s d s d s d s d nds.Total wealth in the economy = B M = B + M Rearranging: B - B = M - M If the market for money is in equilibrium (M = M ),
then the bond market is also in equilibrium (B = B ).
7.Demand for Money in the Liquidity Preference Framework
?As the interest rate increases:
–The opportunity cost of holding money incr eases…
–The relative expected return of money decreases…
?…and therefore the quantity demanded of money decreases.
8.Shifts in the Demand for Money（都很重要）
?Income Effect: a higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the right ?Price-Level Effect: a rise in the price level causes the demand for money at each interest rate to increase and the demand curve to shift to the right ?Liquidity preference framework leads to the conclusion that an increase in the money supply will lower interest rates: the liquidity effect.
?Income effect finds interest rates rising because increasing the money supply is an expansionary influence on the economy (the demand curve shifts to the right).
Chapter9:Banking
1.The Bank Balance Sheet
?Liabilities
–Checkable deposits
–Nontransaction deposits
–Borrowings
–Bank capital
?Assets
–Reserves(准备金)
–Cash items in process of collection
–Deposits at other banks
–Securities
–Loans
–Other assets
–
2.Basic Banking:
?Cash Deposit：Opening of a checking account leads to an increase in the bank’s reserves equal to the increase in checkable deposits
Check Deposit
3．Inter-business
?Bank settlement
?Finance lease
?Fiduciary business
?Safe deposit box
4. Off-Balance-Sheet Activities
? Loan sales (secondary loan participation)
? Generation of fee income. Examples:
Chapter12:Central Banks and the Federal Reserve System (此章省略很多) 1.
Structure of
the Fed(了解即可)
12 FRBs （9人） Member Banks
FOMC (7+1+4人)
Federal Advisory Council （12人）
2. Federal Reserve Bank （3+3+3人）
Functions ：
Clear checks
Issue new currency
Withdraw damaged currency from circulation
Administer and make discount loans to banks in their districts
Evaluate proposed mergers and applications for banks to expand their activities Act as liaisons between the business community and the Federal Reserve System Examine bank holding companies and state-chartered member banks
Collect data on local business conditions
Use staffs of professional economists to research topics related to the conduct of monetary policy
Chapter13&14：The Money Supply Process :
1. Players in the Money Supply Process Central bank (Federal Reserve System)
Banks (depository institutions; financial intermediaries)
Depositors (individuals and institutions)
3.Monetary Base
High-powered money
= += currency in circulation
= total reserves in the banking system
MB C R
C R
4.Open Market Purchase
? 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 always increases the monetary base by the amount of the purchase
Open Market Sale
? Reduces the monetary base by the amount of the sale
? Reserves remain unchanged
The effect of open market operations on the monetary base is much more certain than the effect on reserves
5. Fed’s Ability to Control the Monetary Base
Split the monetary base into two components :
MBn= MB - BR
the non-borrowed monetary base :MBn
borrowed reserves:BR
6.The Formula for Multiple Deposit Creation （很重要！必考,记住公式）
7.
Factors that Determine the Money Supply
Changes in the nonborrowed monetary base MBn
Changes in borrowed reserves from the Fed
Changes in the required reserves ratio
Changes in currency holdings
Changes in excess reserves
Assuming banks do not hold excess reserves Required Reserves () = Total Reserves () = Required Reserve Ratio () times the total amount of checkable deposits ()Substituting = Dividing both s RR R RR r D r D R ?ides by 1 = Taking the change in both sides yields 1 = r D R r D R r ????
8.The Money Multiplier(重点)
Assume that the desired holdings of currency C and excess reserves ER grow proportionally with checkable deposits D. Then,
c = {C/D} = currency ratio
e = {ER/D} = excess reserves ratio
The monetary base MB equals currency (C) plus reserves (R):
MB = C + R = C + (r x D) + ER
M=m*MB=m*(MBn+BR)
M=1+c/r+e+c
Chapter 15：Tools of Monetary Policy
1. Tools of Monetary Policy
Open market operations
Changes in borrowed reserves
Changes in reserve requirements
Federal funds rate: the interest rate on overnight loans of reserves from one bank to another
2.Demand in the Market for Reserves
Supply in the Market for Reserves
3.Affecting the Federal Funds Rate
4.Open Market Operations（超级重点）
Advantages：
The Fed has complete control over the volume
Flexible and precise
Easily reversed
Quickly implemented
5.Discount Policy（超级重点）
Advantages：
Used to perform role of lender of last resort
disadvantages：
Cannot be controlled by the Fed; the decision maker is the bank
6.Reserve Requirements（超级重点）
Advantages：
?No longer binding for most banks
disadvantages：
?Can cause liquidity problems
?Increases uncertainty for banks
7.Monetary Policy Tools of the European Central Bank
?Open market operations
?Lending to banks
?Reserve Requirements
Chapter16：The Conduct of Monetary Policy: Strategy and Tactics
1. Goals of Monetary Policy
（1）The Price Stability Goal
?Low and stable inflation
?Inflation
?Nominal anchor to contain inflation expectations
?Time-inconsistency problem
（2）Other Goals of Monetary Policy
?High employment
?Economic growth
?Stability of financial markets
?Interest-rate stability
?Foreign exchange market stability
2.Monetary Targeting
?Advantages
–Almost immediate signals help fix inflation expectations and produce less inflation
–Almost immediate accountability
?Disadvantages
–Must be a strong and reliable relationship between the goal variable and the targeted monetary aggregat e
3.Inflation Targeting
?Public announcement of medium-term numerical target for inflation ?Institutional commitment to price stability as the primary, long-run goal of monetary policy and a commitment to achieve the inflation goal ?Information-inclusive approach in which many variables are used in making decisions
?Advantages
?Does not rely on one variable to achieve target
?Easily understood
?Reduces potential of falling in time-inconsistency trap
?Stresses transparency and accountability
?Disadvantages
?Delayed signaling
?Too much rigidity
?Potential for increased output fluctuations
? Low economic growth during disinflation
4.Monetary Policy with an Implicit Nominal Anchor
There is no explicit nominal anchor in the form of an overriding concern for the Fed. Forward looking behavior and periodic “preemptive strikes”
The goal is to prevent inflation from getting started.
? Advantages
– Uses many sources of information
– Avoids time-inconsistency problem
? Disadvantages
– Lack of transparency and accountability
– Strong dependence on the preferences, skills, and trustworthiness of individuals in charge
– Inconsistent with democratic principles
5.
Tactics: Choosing the Policy Instrument
? Tools
– Open market operation
– Reserve requirements
– Discount rate
? Policy instrument (operating instrument)
– Reserve aggregates
– Interest rates
– May be linked to an intermediate target
? Interest-rate and aggregate targets are incompatible (must chose one or the other).
6.Linkages Between Central Bank Tools, Policy Instruments, Intermediate Targets, and Goals of Monetary Policy(中间目标是超级重点，死活都要背下来
)
Chapter19:The Demand for Money
1.
Velocity of Money and The Equation of Exchange
V=P*Y/M
M*V=P*Y
2.Quantity Theory of Money Demand
SO: Demand for money is determined by:
The level of transactions generated by the level of nominal income PY
The institutions in the economy that affect the way people conduct transactions and thus
determine velocity and hence k
3.Keynes’s Liquidity Preference Theory
Transactions motive
Precautionary motive
Speculative motive
Velocity is not constant:
4. Friedman’s Modern Quantity Theory of Money (记住该公式及其含义)
5.
Differences between Keynes’s and Friedman’s Model (cont’d)
? Friedman
– Includes alternative assets to money
– Viewed money and goods as substitutes
– The expected return on money is not constant; however, r b – r m does
stay constant as interest rates rise
– Interest rates have little effect on the demand for money
? Friedman (cont’d)
– The demand for money is stable ?
velocity is predictable
– Money is the primary determinant of aggregate spending
Chapter23：Transmission Mechanisms of Monetary Policy: The Evidence
1.Framework
(1)Structural Model
whether one variable affects another
? Transmission mechanism
– The change in the money supply affects interest rates
– Interest rates affect investment spending
– Investment spending is a component of aggregate spending (output) Advantages and Disadvantages
(2)Reduced-Form
? Analyzes the effect of changes in money supply on aggregate output
(spending) to see if there is a high correlation
Advantages and Disadvantages
PY k M d ?=()m e m e m b p d
r r r r r Y f P M ---=π,,,
2.Transmission Mechanisms of Monetary Policy
(1)Asset Price Effects
Traditional interest rate effects
Exchange rate effects on net exports
...
(2)Credit View
Chapter24:Money and Inflation
1.meaning of inflation(死活背下来)
extremely high for a sustained period of time, its rate of money supply growth is also extremely high
?Money Growth
–High money growth produces high inflation
?Fiscal Policy
–Persistent high inflation cannot be driven by fiscal policy alone ?Supply Shocks
–Supply-side phenomena cannot be the source of persistent high inflation
?Conclusion: always a monetary phenomenon
2.Origins of Inflationary Monetary Policy
?Cost-push inflation
–Cannot occur without monetary authorities pursuing an accommodating policy
?Demand-pull inflation
?Budget deficits
–Can be the source only if the deficit is persistent and is financed by creating money rather than by issuing bonds
?Two underlying reasons
–Adherence of policymakers to a high employment target
–Presence of persistent government budget deficits
3.The Discretionary (Activist)/ Nondiscretionary (Nonactivist) Policy Debate （1）Advocates of discretionary policy：
regard the self-correcting mechanism as slow
Policy lags slow activist policy
（2）Advocates of nondiscretionary policy:
believe government should not get involved
Discretionary policy produces volatility in both the price level and output