Matakuliah
Tahun
: F0882 - Economic Analysis
: 2009
FINANCIAL MARKETS AND THE SPECIAL
CASE OF MONEY
Chapter 6
Learning Outcomes
•
•
•
•
The Modern Financial System
The Special Case of Money
Banking and the Supply of Money
The Stock Market
Bina Nusantara University
3
The Flow of Funds Tracks Financial Flows in
the Economy
Most Interest Rates Move Together
The Evolution of Money
1. The History of Money : Barter, Commodity Money,
Modern Money.
2. Components of the Money Supply : Narrow
(transactions) Money, Broad Money.
3. The Demand For Money : Money’s Functions, The
Costs of Holding Money, Two Sources of Money
Demand (Transactions Demand for Money and Asset
Demand.
Bina Nusantara University
6
Multiple-Bank Expansion of Money
Chapter 25 Figure
25-5
Risk and Return on Major Investments,
1926-1998
The Only Guarantee about Stock Prices Is
That They Will Fluctuate