The Central Bank announces to fall today allow 0.5 percent, fall in the round accurate 8 one billion two hundred and fifteen million seven hundred and fifty-two thousand one hundred and ninety-two, Increase in be opposite of small small company give aid to,
Actually we often see inside news of a few finance and economics " lower interest " and " fall accurate " these two professional term, should have only lower interest fall accurate information is put, the market is met a jubilation. A few people think to lower interest falling is pair of certain industries definitely or the profit of the stock is good, should lower interest only fall accurate information, these people can go up with respect to meeting conjecture stock market how many. But if give off a message to want " add breath " or " raise deposit reserve to lead " , inside the market often an Ai Hong. Clever your meeting discovers, often beautiful couplet Chu Fang goes out " greaten about increasing breath possibility " when the message, with respect to the picture that the stock market that can cause the whole world appears to drop generally.
Actually most person does not know, pass through the financial phenomenon of these surfaces, reflected the logic with modern economy the most significant movement, namely the country can come through bank system the credit dimensions of whole society mixes adjusting control cold heat of economy
The pilot that how achieves pair of economy through bank system is the country? The country is to gift first the right with special central bank, let central bank can distribute a money, next central bank undertakes through leaving the system of commercial bank deposit is mixed inducting put borrowed activity outside, this one process is called " credit is created " . To facilitate everybody's understanding, we make an example, regard whole economy system as an old farm, whole bank system is the large water conservancy project inside this old farm. And the fountainhead reservoir that the Central Bank is system of this tremendous irrigation works, the legal money that the Central Bank distributes is the water inside reservoir. The commercial bank is the greatly small centre water station in system of whole irrigation works, have immediate effect effect to the cold heat of the credit dimensions of whole society and economy.
Our preamble mentions " deposit reserve is led " and " standard interest rate " it is the Central Bank two of whole reservoir tremendous gate. The Central Bank can control these two gate, if " deposit reserve is led " what gate opens is a bit bigger what perhaps close is a bit smaller, we can feel the money on the market became much apparently perhaps be troubled by Qian Huang.
Spoken parts in an opera, deposit reserve is the credit dimensions that through credit dilate the mechanism affects whole society, standard interest rate will be opposite my retell tomorrow the influence of whole economy cold heat, actually these are looked at very lofty the professional term that go up actually not fathomless, and the fortune with us, investment and obtain employment be closely bound up.
One, the monetary dilate mechanism of deposit reserve system
That after all what calls deposit reserve? After normally the bank inducted the deposit of depositor, should put borrow go out, can be the individual borrows money or the enterprise borrows money, will support consumption and production through this kind of means. But, depositor puts money to necessarily depositor needs to carry now, and raise showing requirement everyday very big also, to satisfy this requirement, bank have to one fraction Qian Laiman's sufficient client carries obligate satisfaction need. These money of obligate call deposit reserve, the scale of obligate capital is deposit reserve is led. The Central Bank is the control that through adjusting deposit reserve ratio implements pair of credit scale.
Very interesting is, deposit reserve has the effect of amplifier in system of whole bank loop, one is called originally " the currency rises " the book does not know to have a person to had been read, the influence of dimensions of credit of pairs of the small canzonet that the MBA student that university of a haing Buddha introduced namely inside passes small experiment of a classroom to confirm deposit reserve is led is whole whole societies.
This experiment is such, a student acts as the part of the Central Bank, the person that leave acts different bank and depositor. The Central Bank issued a regulation now, the deposit reserve of all banks is led below it is surely 10% , the carrying of the 10% contented depositor that mean these banks to want obligate to give bank savings shows demand. The Central Bank issued 100 dollars to pay this professor of classroom as advisory cost that now, the professor puts money into some home bank with the identity of depositor, this bank must need obligate to give 10 dollars, put the 90 dollars that leave next borrow go out. Among them a classmate took the loan of this 90 dollars, but this classmate won't put money in the pocket to perhaps hide in the cabinet for certain, this classmate puts this money to a bank again. Same, this bank also gets the formulary obligate according to the Central Bank to give bank savings 10% as reserve, after the bank keeps 9 dollars, continue the 81 dollars that leave to put borrow go out, such loops go down. You are guessed lead according to the reserve of 10% , how many do we shed the capital that open to you can have socially finally?
The result may make you astonied, most initial 100 dollars, lead by the reserve of 10% so current go down, can make us whole finally the fund with current society reachs 1000 dollars. News looks to always can see fundamental currency before us (M0) with broad sense money (M2) this kind of word. Actually inside above small experiment, most initial 100 dollars are fundamental money (M0) , and last 1000 dollars are broad sense money (M2) , fundamental money (M0) it is the legal money that the Central Bank distributes actually, circulate in system of whole commercial bank through the reserve ratio of 10% socially monetary supply magnified full 10 times, this multiple calls a money multiplier, it is the reciprocal that deposit reserve leads actually.
Everybody understood deposit reserve for certain now this concept, the Central Bank is the money that goes up according to the market more or less will adjust deposit reserve leads what control monetary multiplicator secondhand thereby. If the money on the market became much, that is about to should lead deposit reserve rise, let monetary multiplicator decrescent, lead deposit reserve for example rise 20% , monetary multiplicator became 5, if be in before in that small experiment, most money of initial 100 dollars foundation, in the market current later the broad sense currency that became 500 dollars. Contrary, if the Central Bank feels the Qian Tai on the market became little, cannot make economy too cool, the Central Bank has to put bit of water, through reducing deposit reserve ratio can come true. Falling so is the Central Bank definitely turn on the water, why do this fall namely the reason that accurate market upsurges enthusiasticly, because people feels the money with current market becomes much, corresponding investment opportunity is much, profitable probability may be relatively a few bigger.
2, a few real factors that affect monetary dilate
Through above explain, clever you had known to adjust it is OK that deposit reserve is led change money multiplicator (monetary dilate is diploid) , make the money twice enlarge of the flow on the market contractible perhaps. Nevertheless, these come out suppose in the experimental environment in an ideal, actual state should compare this complex much. Whether is the bank willing to put for instance borrow, or the amount of the cash in enterprise and individual hand can is opposite monetary dilate produces immediate effect.
Talk about a bank above all put borrow apiration, because a moment ago small experiment is hypothesis bank besides obligate reserve, remain all money to be put borrow go out. But if be below the situation with bad economic situation, the bank also is to be able to fear the loan that puts closes not to come back, aux would rather so bend over money on Zhang to also be not put borrow go out. If the bank still leaves 90 dollars in the right hand side of the reserve besides obligate, considering economic reason, the bank is willing to be put outside only shift 50 dollars, this kind of case appears really possibly in reality. If a lot of banks are done so, although the Central Bank is increased,fall accurate strength, but because the bank below is not willing,put borrow the effect that also does not have to stimulate economy. China is the closest in these 20 years, falling one year accurate strength is the greatest was 1998, the Central Bank leads deposit reserve at that time from 13% reduce directly 8% , but the economy 1999 does not raise to fall instead, GDP is added fast the lowermost level since still achieving 90 time, because stagnant economy environment falls, a lot of people are pessimistic, the bank is not willing give off, fall to cannot increase credit scope of the society definitely. It is very important also to the dilate of credit that so the bank puts borrowed apiration.
Talk about another reason again, the amount of the cash in individual and enterprise hand also can affect the mechanism of credit dilate. Cite a case, on holidays when, the place of cash of big housekeeping money is more, the employee of gold of award prize of the red bag greeting between the friend, unit expressing sympathy and solicitude for, shopping demand that goes close to visit friend is waited a moment, arrive so the use volume of year of section cash can rise. If be at ordinary times, sent salary you may be put in the bank, but you should spend one part now, the credit dilate that bring about whole society so appears contractive. Arrive so when spending the New Year, the Central Bank often can put bit of water, the fundamental money on compensatory market, affect the mechanism of monetary dilate thereby.
