SUMMARY ECONOMICS
Business Strategies Y2Q1
Simone Snepvangers
, Table of content
Chapter 24 ‘Saving, investment and the fnancial system’.....................................................................2
Financial insttutons in the economy.................................................................................................2
Saving and investment in the natonal income accounts....................................................................2
The market for loanable funds...........................................................................................................3
Chapter 8 ‘Money and capital markets’ (handout).................................................................................3
8.1.1 Functon of the money and capital markets..............................................................................3
8.1.2 Classifcaton of the money and capital markets.......................................................................3
8.2.1 The wholesale money market....................................................................................................4
8.2.2 The retail money market...........................................................................................................4
8.3.1 Capital market segments...........................................................................................................5
8.3.2 The capital market interest rate................................................................................................5
Chapter 27 ‘The monetary system’.........................................................................................................6
The meaning of money.......................................................................................................................6
The role of central banks....................................................................................................................6
Banks and the money supply..............................................................................................................7
The central bank’s tools of monetary control.....................................................................................7
Chapter 28 Money growth and infaton................................................................................................7
The classical theory of infaton..........................................................................................................7
The cost of infaton............................................................................................................................8
Chapter 29 Open-economy macroeconomics: basic concepts...............................................................8
The internatonal fows of goods and capital......................................................................................8
The prices for internatonal transactons: real and nominal exchange rates....................................10
A frst theory of exchange rate determinaton: purchasing power parity.........................................10
Chapter 30 A macroeconomic theory of the open economy................................................................10
Supply and demand for loanable funds and for foreign currency exchange....................................10
Market for loanable funds............................................................................................................10
Market for foreign currency exchange.........................................................................................11
Equilibrium in the open economy.....................................................................................................11
How policies and events afect an open economy............................................................................11
Big mac PPP......................................................................................................................................11
Chapter 37 Common currency areas and European monetary union..................................................12
The euro €........................................................................................................................................12
The single European market and the euro.......................................................................................12
The benefts and costs of a common currency.................................................................................13
1
Business Strategies Y2Q1
Simone Snepvangers
, Table of content
Chapter 24 ‘Saving, investment and the fnancial system’.....................................................................2
Financial insttutons in the economy.................................................................................................2
Saving and investment in the natonal income accounts....................................................................2
The market for loanable funds...........................................................................................................3
Chapter 8 ‘Money and capital markets’ (handout).................................................................................3
8.1.1 Functon of the money and capital markets..............................................................................3
8.1.2 Classifcaton of the money and capital markets.......................................................................3
8.2.1 The wholesale money market....................................................................................................4
8.2.2 The retail money market...........................................................................................................4
8.3.1 Capital market segments...........................................................................................................5
8.3.2 The capital market interest rate................................................................................................5
Chapter 27 ‘The monetary system’.........................................................................................................6
The meaning of money.......................................................................................................................6
The role of central banks....................................................................................................................6
Banks and the money supply..............................................................................................................7
The central bank’s tools of monetary control.....................................................................................7
Chapter 28 Money growth and infaton................................................................................................7
The classical theory of infaton..........................................................................................................7
The cost of infaton............................................................................................................................8
Chapter 29 Open-economy macroeconomics: basic concepts...............................................................8
The internatonal fows of goods and capital......................................................................................8
The prices for internatonal transactons: real and nominal exchange rates....................................10
A frst theory of exchange rate determinaton: purchasing power parity.........................................10
Chapter 30 A macroeconomic theory of the open economy................................................................10
Supply and demand for loanable funds and for foreign currency exchange....................................10
Market for loanable funds............................................................................................................10
Market for foreign currency exchange.........................................................................................11
Equilibrium in the open economy.....................................................................................................11
How policies and events afect an open economy............................................................................11
Big mac PPP......................................................................................................................................11
Chapter 37 Common currency areas and European monetary union..................................................12
The euro €........................................................................................................................................12
The single European market and the euro.......................................................................................12
The benefts and costs of a common currency.................................................................................13
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