【正文】 e↑ → Y ↑ Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2333 Table 4 Principal Financial Intermediaries and Value of Their Assets Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2329 Function of Financial Intermediaries: Indirect Finance ? Lower transaction costs (time and money spent in carrying out financial transactions). – Economies of scale – Liquidity services ? Reduce the exposure of investors to risk – Risk Sharing (Asset Transformation) – Diversification Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2313 FIGURE 3 The Link Between Moary Policy and GDP: Moary Transmission Mechanisms Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 232 Structural Model ? Examines whether one variable affects another by using data to build a model that explains the channels through which the variable affects the other ? Transmission mechanism – The change in the money supply affects interest rates – Interest rates affect investment spending – Investment spending is a ponent of aggregate spending (output) Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2318 Lessons for Moary Policy ? It is dangerous always to associate the easing or the tightening of moary policy with a fall or a rise in shortterm nominal interest rates ? Other asset prices besides those on shortterm debt instruments contain important information about the stance of moary policy because they are important elements in various moary policy transmission mechanisms Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2334 Regulation of the Financial System ? To increase the information available to investors: – Reduce adverse selection and moral hazard problems – Reduce insider trading (SEC). Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2328 Internationalization of Financial Markets (Glossary) ? Foreign Bonds: sold in a foreign country and denominated in that country’s currency ? Eurobond: bond denominated in a currency other than that of the country in which it is sold ? Eurocurrencies: foreign currencies deposited in banks outside the home country – Eurodollars: . dollars deposited in foreign banks outside the . or in foreign branches of . banks ? World Stock Markets – Help finance federal government also Copyright 169。 2020 Pearson AddisonWesley. All rights reserved. 2312 Historical Evidence ? If the decline in the growth rate of the money supply is