Summary Money and Credit – I JUDITH LEHNER – SCRIPT FOR THE LECTURE MONEY AND CREDIT

I

JUDITH LEHNER – SCRIPT BACK VORLESUNG

MONEY AND KREDIT

WINTERSEMASTER 2019/20, PROF. DR. BERNHARD HORE, UNIVERSITY BAYREUTH

ICONTENT

A Basics ………………………………………………………………………………………………………………………………………………………………. 1

I. Stylized facts (see slides) ………………………………………………………………………………………………………………………………….. 1

II. Functions of the financial sector ………………………………………………………………………………………………………………………………… 1

Productive functions of the financial sector ……………………………………………………………………………………………………………….. 1

money forms ………………………………………………………………………………………………………………………………………………………….. 3

amounts of money and wealthin ……………………………………………………………………………………………………………………………. 4

B Monetary framework conditions ………………………………………………………………………………………………………………………………….. 5

I. The ECB as an institution: the Eurosystem ……………………………………………………………………………………………………………………. 5

II. Money Offer ………………………………………………………………………………………………………………………………………………………… 7

Credit Creation and Gelcreation ………………………………………………………………………………………………………………………. 7

Model of the money offerotprocess ……………………………………………………………………………………………………………………… 10

Sovereign money than agingative monetary system ……………………………………………………………………………………………………………………… 11

C interest ……………………………………………………………………………………………………………………………………………………………………. 12

I. Interest level ………………………………………………………………………………………………………………………………………………………….. 12

Nominal interest rate and realzins ……………………………………………………………………………………………………………………………………. 12

interest parity ………………………………………………………………………………………………………………………………………………………….. 13

Interest coupon, yield and bond price …………………………………………………………………………………………………………………… 14

II. Interest rate structure ………………………………………………………………………………………………………………………………………………………… 15

creditworthiness ………………………………………………………………………………………………………………………………………………………………. 15

term structure theory ………………………………………………………………………………………………………………………………………………. 15

D Transmissionsmechanismn …………………………………………………………………………………………………………………………………….. 17

I. Transmission Monetary Impulse …………………………………………………………………………………………………………………………… 17

Analysis of transmissionbecause of monetary policy by macroeconomic Monof: AS–AD …………………………………………. 17

Phillips–Curve …………………………………………………………………………………………………………………………………………………….. 19

II. Interest– and asset prices ………………………………………………………………………………………………………………………………….. 20

Traditional interest effect ……………………………………………………………………………………………………………………………………….. 20

Tobins q …………………………………………………………………………………………………………………………………………………………….. 20

III. Kreditkanal ………………………………………………………………………………………………………………………………………………………… 21

credit rationing ……………………………………………………………………………………………………………………………………………….. 21

credit channels ………………………………………………………………………………………………………………………………………………………. 22

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