Money Economics Core Knowledge Study Guide
This guide provides a systematic overview of the core framework of monetary theory and policy, starting from the origins, functions, and institutional foundations of money, delves into the core theoretical framework of money supply and demand, extends to the targets, instruments, transmission mechanisms, and effectiveness assessments of monetary policy, and covers practical issues such as inflation governance and policy coordination, aiding learners in constructing a comprehensive framework of monetary economic analysis.
Fundamental Concepts of Currency and Institutional Evolution
The Origin and Development of Currency
Functions of Money (Measure of Value, Means of Circulation, Store of Value, Means of Payment)
Core Theory of Money Supply and Demand
Composition and Classification of Money Supply (M0, M1, M2, etc.)
The Calculation and Factors Affecting the Money Multiplier
Monetary Demand Theory (Keynesian Monetary Demand Theory, Friedman's Monetary Demand Function)
Money Market Equilibrium and the Determination of Interest Rates
Monetary Policy's Practical System
Objectives of Monetary Policy and Tools (Open Market Operations, Adjustments to the Statutory Reserve Ratios, Adjustments to the Discount Rate etc.)
- The Ultimate Goals of Monetary Policy and Their Interrelationships
- Selection Criteria and Types of Intermediate Targets in Monetary Policy
- The operational mechanism and characteristics of the statutory reserve ratio
- The regulatory mechanism and effects of the discount rate tool
- Methods and Advantages of Open Market Operations