Asset Markets, Money, and Prices

Asset Markets, Money, and Prices - Lecture #11 Asset...

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Econ 1110, Spring 2008, Professor Te 1 Lecture #11 Asset Markets, Money, and Prices
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Econ 1110, Spring 2008, Professor Te 2 Functions of Money Medium of Exchange Store of Value Unit of Account
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Econ 1110, Spring 2008, Professor Te 3 U.S. Monetary Aggregates November 2005 (billions of dollars) M1 1372.4 Currency 718.8 Travelers' checks 7.3 Demand deposits 326.6 Other checkable deposits 319.7 M2 6652.7 Components of M1 1372.4 Savings deposits, including MMDAs 3600.1 Small-denomination time deposits 960.1 MMMF (retail) 720.1 M3 10,098.7 Components of M2 6652.7 Large-denomination time deposits 1339.1 MMMFs (institutional) 1120.3 Repurchase agreements 551.2 Eurodollars 435.4
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Econ 1110, Spring 2008, Professor Te 4 Money Supply Controlled by Central Bank (Fed) Open-market operations Open-market purchase Increases money supply Open-market sale Decreases money supply
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5 Portfolio Allocation Characteristics of Assets Expected return
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This note was uploaded on 04/15/2008 for the course ECON 1110 taught by Professor Tedloch-temzelides during the Spring '08 term at Pittsburgh.

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Asset Markets, Money, and Prices - Lecture #11 Asset...

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