1、Chapter 3What Is Money? 2005 Pearson Education Canada Inc.3-2 2005 Pearson Education Canada Inc.Meaning and Function of MoneyEconomists Meaning of Money1. Anything that is generally accepted in payment for goods and services2. Not the same as wealth or incomeFunctions of Money1. Medium of exchange2.
2、 Unit of account3. Store of valueEvolution of Payments System1. Precious metals like gold and silver2. Paper currency (fiat money)3. Checks4. Electronic means of payment5. Electronic money: Debit cards, Stored-value cards, Smart cards, E-cash3-3 2005 Pearson Education Canada Inc.Bank of Canadas Mone
3、tary Aggregates3-4 2005 Pearson Education Canada Inc.Growth Rates of the Banks Monetary Aggregates3-5 2005 Pearson Education Canada Inc. The Bank of Canadas money supply measures are simple-sum indices, M = x1 + x2 + + xn ,where xj is one of the n monetary components of the monetary aggregate M Weighted monetary aggregates (such as the Divisia) seem to predict inflation and the business cycle somewhat better than the Banks aggregatesMoney as a Weighted Aggregate
