CAS EC 102 Lecture Notes - Lecture 9: Huntington Hartford, Eurodollar, Fiat Money
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CAS EC 102 Full Course Notes
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Chapter 16 discusses what causes inflation/deflation; key point is amount of money influences inflation/deflation. Measuring amount of money helps us predict and control inflation/deflation. Spending is based on amount of money individuals and businesses have. There are different types of money based on liquidity. Liquidity is the ease with which an asset can be converted into cash, without losing value, and spent. M3: least liquid (no longer used in us) From feb 2005 to feb 2006, grew 8. 4% Series ended in feb 2006, but still used in germany and eu. World bank provides fata of stock of money and stock of quasi-money in wdi. Stock of quasi-money is m2 minus m1. Savings and time deposits held in a country"s bank. Cia factbook provide data on narrow money and broad money. All various forms of cash and deposits held in a country"s banks. Could be holding a bond instead of money and earning interest.