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week#7 (money (fundamental purposes (medium of exchange, standard of value…

- - - - money supply
        
        bank reserve deposite accounts
        
        reserve deposite earn a very little interest rate, never hold more than necessary
        
        M = CU + DEP
        
        in Australia
        
        overnight cash market
        
        reserve bank of au 银行如何干涉？
        
        as a monopoly supplier of funds, buying and selling securities crediting and debating their ES account
        
        by providing exchange settle funds through repurchase agreements
        
        policy objective: to achieve a target for consumer price inflation of 2-3% per annum
      - Fed can only directly influence the money base = CU + RES
        
        Money supply is a multiple of the money base
        
        currency deposit ratio or reserve deposit ratio 增加导致 money multiples 减小
        
        policy objective: promote effectively the goals of maximum employment, stable prices and moderate long term interest rates.