whystudymoneybankingandfinancialmarkets(编辑修改稿)

whystudymoneybankingandfinancialmarkets(编辑修改稿)内容摘要：

iscal Policy • Moary policy is the management of the money supply and interest rates – Conducted in the . by the Federal Reserve System (Fed) • Fiscal policy deals with government spending and taxation – Budget deficit is the excess of expenditures over revenues for a particular year – Budget surplus is the excess of revenues over expenditures for a particular year – Any deficit must be financed by borrowing Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 119 FIGURE 8 Exchange Rate of the . Dollar, 1970–2020 Source: Federal Reserve: Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 120 The Foreign Exchange Market • The foreign exchange market is where funds are converted from one currency into another • The foreign exchange rate is the price of one currency in terms of another currency • The foreign exchange market determines the foreign exchange rate Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 121 International Finance • Financial markets have bee increasingly integrated throughout the world. • The international financial system has tremendous impact on domestic economies: – How a country’s choice of exchange rate policy affect its moary policy? – How capital controls impact domestic financial systems and therefore the performance of the economy? – Which should be the role of international financial institutions like the IMF? Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 122 How We Will Study Money, Banking, and Financial Markets • A simplified approach to the demand for assets • The concept of equilibrium • Basic supply and demand to explain behavior in financial markets • The search for profits • An approach to financial structure based on transaction costs and asymmetric information • Aggregate supply and demand analysis Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 123 FIGURE 9 Federal Reserve Board Website Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 124 FIGURE 10 Excel Spreadsheet with InterestRate Data Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 125 FIGURE 11 Excel Graph of InterestRate Data Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 126 C。