Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*Meaning of MoneyMoney (money supply)anything that is
generally accepted in payment for goods or services or in the
repayment of debts; a stock conceptWealththe total collection of
pieces of property that serve to store valueIncomeflow of earnings
per unit of time
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*Functions of MoneyMedium of Exchangepromotes economic
efficiency by minimizing the time spent in exchanging goods and
servicesMust be easily standardizedMust be widely acceptedMust be
divisibleMust be easy to carryMust not deteriorate quicklyUnit of
Accountused to measure value in the economyStore of Valueused to
save purchasing power; most liquid of all assets but loses value
during inflation
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*Evolution of the Payments SystemCommodity MoneyFiat
MoneyChecksElectronic PaymentE-Money
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*How Reliable are the Money Data?Revisions are issued
because:Small depository institutions report
infrequentlyAdjustments must be made for seasonal variationWe
probably should not pay much attention to short-run movements in
the money supply numbers, but should be concerned only with
longer-run movements
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
Copyright 2007 Pearson Addison-Wesley. All rights
reserved.3-*
Copyright 2007 Pearson Addison-Wesley. All rights reserved.
