Bài giảng Macro - Chapter 12 Money & Banking

Money & BankingChapter 12SLIDES PREPARED BY JUDITH SKUCE, GEORGIAN COLLEGEIn this chapter you will learnThe definition and function of moneyWhat constitutes the supply of moneyWhat backs Canada’s money supplyAbout the structure of the Canadian financial systemChapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingThe Functions of MoneyMedium of exchangeThe Functions of MoneyMedium of exchangeUnit of accountThe Functions of MoneyMedium of exchangeUnit of accountStore of valueChapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingCurrency (coins & paper money) plus Demand depositsequals M1M1(billions of dollars)December, 2000109.6The Supply of MoneyTable 12-1The Supply of MoneyCurrency: Coins + Paper Moneytoken moneyBank of Canada notesDemand DepositsInstitutions That Offer Demand Depositstrust companies, caisses populaires, credit unionsCurrency (coins & paper money) plus Demand depositsequals M1 plus Personal savings deposits, plus Non-personal notice depositsequals M2M1M2500.1The Supply of MoneyTable 12-1(billions of dollars)December, 2000109.6The Supply of MoneyNear-moniesnonchequable savings depositsterm depositsCurrency (coins & paper money) plus Demand depositsequals M1 plus Personal savings deposits, plus Nonpersonal notice depositsequals M2 plus Deposits: Other intermediariesequals M2+ M1M2+694.2M2500.1The Supply of MoneyTable 12-1(billions of dollars)December, 2000109.6What about credit cards?Credit cards are NOT money!Chapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingWhat “Backs” the Money Supply?Money as DebtValue of MoneyAcceptabilityLegal TenderRelative ScarcityWhat “Backs” the Money Supply?Money & PricesThe Purchasing Power of the DollarNOTES:Reciprocal relationshipbetween the price leveland the value of thedollarD=1PWhat “Backs” the Money Supply?Money & PricesThe Purchasing Power of the DollarInflation & AcceptabilityStabilization of Money’s Valuerequires appropriate fiscal & monetary policyChapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingThe Canadian Banking SystemEvolution of the Canadian Banking SystemPresent Structurethe big sixthe largest Canadian bank is 55th in the worldAssets (U.S. $ billions)Deutsche Bank (Germany)$955.6Bank of Tokyo-Mitsubishi (Japan)726.3Citigroup (U.S.)716.9BNP Paribas (France)703.1Bank of America (U.S.)632.6UBS (Switzerland)616.8HSBC Holdings (U.K./Hong Kong)601.9Fuji Bank (Japan)561.3Bayerische Hypo Bank (Germany)559.9Sumitomo Bank (Japan)519.2Canadian Imperial Bank of Commerce176.2GLOBAL PERSPECTIVE 12.1AssetsLiabilitiesReserves0.5Demand deposits62.1Loans617.4Savings deposits282.7Gov’t. of Canada securities77.2Term deposits171.6Foreign-currency assets33.0Foreign-currency liabilities67.1Other 217.2Other361.8Total945.3Total945.3Table 12-2The Balance Sheet of Canadian Chartered BanksMarch 2001 ($ Billions)The Canadian Banking SystemMaking LoansOther Financial IntermediariesFinancial IntermediariesThe Canadian Banking SystemDepositsLoans DepositsDepositsLoans Loans The Canadian Banking SystemMaking LoansOther Financial IntermediariesCheque ClearingChapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingRecent Developments in Money & BankingExpansion of ServicesRecent Developments in Money & BankingExpansion of ServicesGlobalization of Financial MarketsRecent Developments in Money & BankingExpansion of ServicesGlobalization of Financial MarketsElectronic TransactionsChapter 12 TopicsThe Functions of MoneyThe Supply of MoneyWhat “Backs” the Money Supply?The Canadian Banking SystemRecent Developments in Money & BankingHow Banks Create MoneyChapter 13Coming up next....