金融英语问答题

一、问答题
1，货币的职能T h e F u n c t i o n s o f M o n e y
1.M e d i u m o f E x c h a n g e o r M e a n s o f E x c h a n g e （交易媒介和交易手段）
2.U n i t o f A c c o u n t o r S t a n d a r d o f V a l u e（计量单位和价值尺度）
3.S t o r e o f V a l u e（价值储备）
2，货币的定义T h e M e a n i n g o f M o n e y
Marx defines money as a special commodity that permanently serves as a general equivalent.
Western economists define money (or, equivalently, the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts
3，T y p e s o f M o n e y(货币的种类)
Since the primitive economy, money changed from commodity money to metallic money, from metallic money to representative money, from representative money to credit money and finally electronic money. In economic life, the need for money is so strong that almost every society, except the most primitive one, invents it.
(1)C o m m o d i t y m o n e y o r m o n e y i n k i n d（商品货币或事物货币）
(2)R e p r e s e n t a t i v e m o n e y（银行券代用货币）
(3)C r e d i t m o n e y（信用货币）
(4)E l e c t r o n i c M o n e y（电子货币）
3.T h e e x t e n s i o n o f m o d e r n m o n e y（现代货币信用的扩展）
T h e g e n e r a l m e a s u r e o f m o n e y s u p p l y （货币供给的一般度量）
M0i s t h e c u r r e n c y o r c a s h i n c i r c u l a t i o n i n c l u d i n g b a n k n o t e s a n d c o i n s.M0i s a l s o c a l l e d b a s e m o n e y t h a t m e a s u r e s t h e q u a n t i t y o f c u r r e n c y i s s u e d b y t h e c e n t r a l B a n k.
M1=M0+D d
M1c o m p r i s e s t h o s e a s s e t s w h i c h a r e
t h e m s e l v e s a c c e p t a b l e i n e x c h a n g e a n d
n o r m a l l y h e l d w i t h t h e i n t e n t i o n o f s p e n d i n g t h e m i n t h e i m m e d i a t e f u t u r e.M1
i n c l u d e s M0,p l u s D d—c h e c k a b l e o r d e m a n d d e p o s i t s a t b a n k s.
T h e b r o a d e r m e a s u r e o f m o n e y s u p p l y:M2 a n d M3
M2=M1+D s+D t
M2i s a b r o a d e r m e a s u r e o f p u r c h a s i n g
p o w e r t h a n M1.I t i n c l u d e s a l l o f M1
p l u s s a v i n g s d e p o s i t s a n d t i m e d e p o s i t s a t
b a n k s.
M3=M2+s h o r t-t e r m g o v e r n m e n t s e c u r i t i e s +c o m m e r c i a l p a p e r+l i f e I n s u r a n c e p o l i c i e s
Q u a s i-m o n e y(准货币)
4.T h e D e v e l o p m e n t o f M o n e t a r y S y s t e m s
a n d T h e i r T y p e s（货币制度的发展和种类）
(1)T h e s i l v e r s t a n d a r d(16t h c e n t u r y)银本位
(2)T h e b i m e t a l l i c s t a n d a r d(16t h—18t h
c e n t u r y)金银复本位
(3)T h e g o l d s t a n d a r d(1813—1914t h e
b e g i n n i n g o f W o r l d W a r I I)金本位
(4)I n c o n v e r t i b l e c r e d i t m o n e y s t a n d a r d（不可兑换的信用货币本位）
每一部分特征：
（1）T h e s i l v e r s t a n d a r d(16t h c e n t u r y)银本位
Under the silver system, the standard money was minted with silver. Silver coins had unlimited power of legal tender, and could be minted, exported and imported freely
(2)T h e b i m e t a l l i c s t a n d a r d(16t h—18t h
c e n t u r y)金银复本位
Under this system, both gold and silver were recognized by law as monetary metal. Both gold and silver coins were in circulation and could be minted freely and had unlimited power of legal tender.
(3)T h e g o l d s t a n d a r d(1813—1914t h e
b e g i n n i n g o f W o r l d W a r I I)金本位
The basic features of the gold coin standard were:
a. Gold coins circulated freely and had unlimited power of legal tender. Gold coins could be minted and melted freely;
b. Gold and gold coins could be imported or exported freely(this guaranteed the stable ratio of gold coins to foreign currencies);
c. Bank notes could be converted into gold or gold coins freely
(4)I n c o n v e r t i b l e c r e d i t m o n e y s t a n d a r d （不可兑换的信用货币本位）
Inconvertible credit money system is a system that has no metal standard money. . Bank notes do not have the provision of gold content are the legal tender and cannot be converted into gold. Under this system, bank notes are put into circulation through credit process.
If a government puts more money into circulation than needed, inflation will surely occurs. Almost every western country has once suffered sustained inflation since adoption of the
inconvertible credit money system.
5.信用的内容
Credit has four elements:
1) Credit relationship---.lender and borrower .The two parties form a relationship of debt and credit by directly or indirectly financing.
2) The object of credit. In a credit relationship, there is a trading object. The object to be transacted is a lender’s asset, which takes the form of either funds or commodities. The former is typical of bank credit while the latter is typical of commercial credit.
3) Credit carrier. In the relationship of credit, the right and the obligation of the two parties of credit are embodied in credit carrier, -----credit instruments or financial
i n s t r u m e n t s.
4 ) Credit conditions. Credit conditions refer to terms and interest rates. The term is the time interval from the time when the relationship of credit starts to the time when the relationship of credit ends. In credit, the ownership of funds or commodity and the right to use them are separated temporarily. The time interval when funds or commodities are used should be decided. So terms are the condition of credit behavior. For creditors, interests are the compensation after giving away the right to use funds
or commodities. For debtors, interests are the costs of using these commodities or funds.
6.信用的特征
(1)T e m p o r i z a t i o n（期限性）
(2)R e p a y m e n t（偿还性）
(3)P r o f i t a b i l i t y（收益性）
(4)R i s k（风险性）
7.信用的功能
The relationship of credit solves the difficulties of matching owners of surpluses and deficits of money and overcomes the disequilibrium in time and space of monetary income among different types of economic entities that have revenue and Expenditure.So the basic function of credit is to reallocate funds or it is a reallocation of funds in the form of borrowing and lending
What’s more, credit also plays the role in providing and creating means of exchange and means of payment.
8.信用的形式
1.C o m m e r c i a l C r e d i t（商业信用）
2.B a n k C r e d i t（银行信用）
3.P u b l i c C r e d i t（公共信用）
4. C o n s u m e r C r e d i t（消费信用）
5.P r i v a t e C r e d i t（民间信用）
各自的特点：
（1）C o m m e r c i a l C r e d i t（商业信用）
The traits of commercial credit are as follows:
(1) Commercial credit is closely linked to a certain commodity transaction.
(2) The creditor and the debtor in commercial credit are either producers or managers of certain commodities;
(3) The supply of and demand for commercial credit is in line with economic Activities.
1.商业信用是以商品形态提供的信用
2.商业信用的债权人和债务人都是企业
3.商业信用的盛衰和经济周期的变化相一致
（2）B a n k C r e d i t（银行信用）
Compared with commercial credit, bank credit has its own features:
(1) Bank credit is granted in the form of money，the capital provided by banks is not the capital on any stage of cycling of industrial capital, but it is monetary income saved by all walks of life or monetary income drafting from cycling of industrial capital.
(2) Bank credit is an intermediate credit, as banks and other financial institutions are intermediaries between the owners and users of monetary capital in credit activities.
(3) The trends of bank credit is different from those of the industrial capital in most stages of capital cycling except for prosperity when the increase of bankers’credit and the enlargement of the industrial capital are roughly simultaneous（同步的）.
(4) Bank credit has the function of money creation. Any entity can grant credit only after it had acquired monetary capital or commodity capital and the size of such commercial credit is confined to its existing capital. Only banks can overcome such limitations. Banks can not only place funds according to fund resources, but also create fund recourses through their use of funds, i. e. creating money through granting loans.
∙银行能把社会上各种闲置资金集中起来，形成巨额银行资本，因此，银行信用不受个别资本的数量和周转的限制。

∙银行信用的对象不是商品资本，而是货币资本。

∙银行信用的债务人是职能资本即工商及农业企业，债权人是银行。

（3）P u b l i c C r e d i t（国家信用）
In modern economy, public credit plays the following important roles:
(1)It is used to make up the budgetary deficit as many countries often suffer from fiscal deficits Generally speaking, there are four ways in which governments can make up their fiscal deficits—to raise taxes, to use fiscal surplus, to borrow from banks or overdraw and to issue government securities。

(2)It can be used to regulate economy and money supply.
（4）C o n s u m e r C r e d i t（消费信用）
F o r m s o f c o n s u m e r c r e d i t（消费信用的形式）
(1)C o n s u m e r’s l o a n.（信贷）
(2)C r e d i t c a r d s（信用卡）
（5）P r i v a t e C r e d i t（民间信用）
Private credit is the credit granted mutually between individuals in the form of
money or goods
The features of private credit are as follows:
(1) The subjects of private credit are individuals or individual organizations or
common consumers of households and individuals who engage independently in
production and sales of commodities.
(2) Private credit adopts floating interest rates which is determined by market supply
of and demand for funds. Interest rates for private credit are usually higher than those
for bank credit.
(3 ) Private credit is of high risk.
(4)Private credit usually has short maturities and the size of it is also small
9.信用创造
k = 1 /Rd
Rd is required reserve ratio.
k = 1/(Rd + c)
In the above formula, c stands for the ratio of cash held by the public to deposits.
k = 1/(Rd + c + e)
In the above formula, e stands for the ratio of excess reserve held by banks on a
voluntary basis
k = 1/(Rd + c + e + Dn *Rn)
In the above formula, Dn stands for the ratio of leakage into noncheckable deposits;
Rn stands for the required reserve ratio for noncheckable deposits.
Part 2 Money Demand and Money Supply
一、专有词汇
二、问答题
1，货币需求的定义
Money demand refers to the need that people are willing to hold their income and assets in the form of money.
2，决定货币需求的7个因素
1. The Level of Interest Rates and Financing Conditions（利率水平和经济发展状况——负相关）
Usually, the rate of interest is inversely related to money demand, i. e. , the rise of interest rates will result in the fall of money demand while the fall of interest rates will lead to the increase of money demand. A loose financing condition will expand money demand while a tight financing condition will cut down money demand.
2. Yields and Investment Environment（投资环境和收益——正相关）
Changes in yields of securities will cause the fall or rise of prices of securities, thus make people choose between holding money or purchasing securities. Generally, money demand will go up while yield on investment rising or investment environment improving. Conversely, money demand will come down.
3. Expectation of Inflation and Price Level（通胀预期—负相关和价格水平—正相关）
The price level is positively related to money demand while expectation of inflation is negatively related to money demand. When people expect a rise of inflation rate and are worried about the further depreciation of money, they will not hold money, but purchase real assets. In this case, the demand for money will shrink
4. Income Level and Techniques of Managing Money Matters（收入水平—正相关和货币政策工具—负相关）
The income level is positively related to money demand. The higher the income level, the more the payments for expenditures, the more money one will hold. The techniques of managing money matters will shift people’s expenditures, further affect the propensity to save. The improvement of techniques of managing money matters will open up more investment channels and bring more income so that the propensity to save will become larger, and the demand for money will decrease. Conversely, the stronger the propensity to consume, the more the money demand.
5. The Forms of Individuals’ Income and Time Interval of Obtaining Income（人们收入的形式和获取收入的间隔——正相关）
In general, the larger the percentage of money income in one’s total income, the larger the demand for money. Money demand is positively related to the time interval of obtaining income. The shorter the time interval of obtaining income, the less the money demand.
6. The Efficiency of Financial Markets and Transaction Costs（金融市场的效率—正相关和交易成本—负相关）
The high efficiency of financial markets and low transaction costs mean a well- developed credit system and relatively perfect financial markets.
7. The Velocity of Money（货币流通速度——负相关）
The faster the velocity of money, the less the money demanded. The slowdown of velocity of money will increase the money demand.
3，货币需求数量理论
1.Marx’s Theory of Money Demand
Marx’s theory of money demand is also called the theory of necessary quantity of money, the equation of which is as follows:
the quantity of money in circulation is finally determined by three factors: the price level of goods P, the quantity of goods Q and the velocity of money V.
In Marx’s view, the right side of the equation determines the left side, not vice versa. So this equation illustrates this basic law:goods circulation determines money circulation（商品流通决定了货币流通）
2.The Classical Quantity Theories of Money Demand（古典的货币需求理论）3个
(1) Fisher’s equation of exchange（费雪方程式）
Below is Fisher’s equation:
MV = PT
In the equation, M is the quantity of money in circulation, V is the transferring velocity of money or the number of times the average unit of money is spent per year; P is the average price of the transactions that take place during the year, T is an index of the current prices and T the total level of transaction during the year. According to observation by Fisher, during a long period, V is constant and T is stable in short period as the ratio of transaction to product is stable. So T can be regarded as constant, too.
Thus in conclusion, the quantity of money determines the price level, which is Fisher’s quantity theory of money（货币数量决定了价格水平）
The further study:
Md = k*PY
As k is constant, Fisher’s quantity theory of money shows, money demand Md
is only the function of income and interest rates have no impacts on money demand.（利率对于货币需求没有影响）
(2) Cambridge cash-balance approach(剑桥方程式)
Fisher’s equation does not take into account the impact of micro-entities’motives on money demand, which many economists argue, is a defect of Fisher’s equation. So the Cambridge School paid great attention to the motives of micro-entities when studying money demand.重视微观主体的行为，而费雪没有考虑微观主体的影响。

According to the Cambridge School, the quantity of money or cash-balance micro-entities held in usual situation has a fixed or stable ratio to people’s wealth or nominal income. （认为名义货币需求与名义收入水平之间总是保持着一个较为稳定的比例关系。

）
So is the case with the whole economy. Thus, money demand can be expressed below:
Md = kPY
In this equation, P is price level; Y is total income; k is the ratio of wealth in nominal GDP that the public desire to hold in the form of money balances and it is presumed constant in short time. Md is the nominal demand we know that the public demand for money in a country depends on the factors affecting Y, P and k. Cambridge economists thought that Y is relatively stable. So Md has a direct ratio to P. （名义的货币需求与价格水平直接相关）
结论：价格水平决定货币需求：The Cambridge School studied money demand in a different way, but arrived at the same conclusion as Fisher at the relationship of the quantity of money and price level.
(3)Keynesian theory of money demand（凯恩斯的货币需求理论）以及继承者的发展
A. Keynes’s theory of mon ey demand
In contrast with his predecessors, Keynes did not simply conclude that the velocity is constant. He carefully studied People’s motives of holding cash and developed liquidity preference theory that lays stress on the importance of interest rates.（货币流通速度不是稳定的，更强调利率的作用）Keynes held that the reason why people hold money is that they have liquidity preference—the desire that people like to keep money instead of illiquid assets. It’s this desire that forms people’s demand for money which is deter mined by three motives: transaction motives, precautionary motives and speculative motives.
1)Transaction motives（交易动机）
People hold money in part because they need to finance forthcoming expenditures for goods and services and because there is time interval between receipt and disbursement of funds, and the timing of their income payments does not coincide with their expected pattern of expenditures.
2)Precautionary motives（预防动机）
People hold money in part to deal with the unexpected incidents requiring additional expenditure.The magnitude（多少）of such a cushion is likely to depend on the level of income.Individuals with higher income would need more money to meet unforeseen circumstances than people with low income
3)Speculative motives（投资动机）
People also hold money because they expect to gain profit from changes of market situation. Keynes concluded that the speculative money balances is very sensitive to the interest rate and is inversely related to the interest rate.
4）Liquidity trap of money demand（流动性陷阱）
Only fiscal policy can solve the problem, that’s to stimulate effective demand through government’s direct investment by increasing government spending in order to increase effective demand so that employment and output will increase, which is the policy implication of Keynes’s theory.（财政政策完全有效，货币政策无效）
B. The development of theory of money demand made by Keynesian Schoo l继承者发展
Through their study, they found that transaction demand and precautionary demand are also functions of interest rates and that peopl e’s choice of diversifying portfolios of assets has certain impact on the speculative demand for money.
Keynesian School advanced the theory of asset portfolio（资产组合理论）On most occasions, people prefer to hold both money and bonds, and only change the ratio of the two assets.
3. Modern Quantity Theory of Money Demand（现代货币需求理论）
In 1956, Friedman published his paper“The Quantity Theory of Money Demand—A Restatement”, which marked the emergence of the modern quantity theory of money.
In his design of the function of demand for money, Friedman took into consideration the two factors: first, the total wealth expressed with permanent Income（永久性收入）which is in a reverse ratio to the demand for money; second, the difference between expected rates of return of holding money and other assets.
Md/p = f(Yp , Rm , Rb , Re , P, W, U)
Md/p : the demand for real money balances,（实际货币需求）
Yp : The real GDP, the index used to count wealth, called permanent income（恒久性收入—正相关）,
Rm : The expected rate of return for money,（货币预期收益率）
Rb : The expected rate of return for bonds,（债券预期收益率）
Re : The expected rate of return for stocks (common stocks),（普通服预期收益率）
P: The expected rate of return of goods or expected rate of inflation,（预期通货膨胀率）
W: The ratio of non-human wealth to human wealth,（非人力财富占总财富的比例—负相关）U: Other random variables,（其他随机变量）including preference, custom, technology, system, etc.
In Friedman’s view, the wealth affecting the money demand is permanent Generally speaking, the demand for an asset has a positive interrelation with the wealth people hold,(货币需求是稳定的,和人们持有的财富正相关)Friedman held that factors affecting money demand are the expected rate of return of the assets that can substitute money。

The higher the expected rate of return of other assets, the less the demand for money.（预期收益越高，货币需求越少）This explains the monetarist rejection of governmental attempts to fine-tune economic activity. A higher level of economic activity requires more capital and labor or technological improvements; more money only leads to inflation. The answer to cyclical downturns(周期性衰退) is to wait for the natural upturn. Government intervention is unnecessary and potentially damaging.(政府不要干预经济)
比较费雪方程式和剑桥方程式：
I. Similarities:(相同点)
The two approaches have the following similarities:
1. Same Conclusion:
The Fisherian and Cambridge versions lead to the same conclusion that there is a direct and proportional relationship between the quantity of money and the price level and an inverse proportionate relationship between the quantity of money and the value of money.
2. Similar Equations:
The two approaches use almost similar equations. Fisher’s equation P = MV/T is similar to Robertson’s equation P = M/kT However, the only difference is between the two symbols V and k which are reciprocal to each other. Whereas V = (1/k) k = (1/V) Here V refers to the rate of spending and k the amount of money which people wish to hold in the form of cash balances of do not want to spend. As these two symbols are reciprocal to each other, the differences in the two equations can be reconciled by substituting 1/V for k in Robertson’s equation and 1/k for V in Fisher’s equation.
3. Money as the Same Phenomenon:
The different symbols given to the total quantity of money in the two approaches refer to the same phenomenon. As such MV+M’V of Fisher’s equation, M of the equations of Pigou and Robertson, and n of Keynes’equation refer to the total quantity of money.
II. Dissimilarities:（不同点）
Despite these similarities the two approaches have many dissimilarities:
1. Functions of Money:
The two versions emphasize on different functions of money. The Fisherian approach lays
emphasis on the medium of exchange function while the Cambridge approach emphasises the store of value of function of money.
2. Flow and Stock:
In Fisher’s approach money is a flow concept while in the Cambridge approach it is a stock concept. The former relates to a period of time and the latter to a point of time.
3. V and k Different:
The meaning given to the two symbols V and кin the two versions is different. In Fisher’s equation V refers to the rate of spending and in Robertson’s equation кrefers to the cash balances which people wish to hold. The former emphasises the transactions velocity of circulation and the latter the income velocity.
4. Nature of Price Level:
In Fisher’s equation, P refers to the average price level of all goods and services. But in the Cambridge equation P refers to the prices of final or consumer goods.
5. Nature of T:
In Fisher’s version, T refers to the total amount of goods and services exchanged for money, whereas in the Cambridge version, it refers to the final or consumer goods exchanged for money.
6. Emphasis on Supply and Demand for Money:
Fisher’s approach emphasises the supply of money, whereas the Cambridge approach emphasises both the demand for money and the supply of money.
7. Different in Nature:
The two approaches are different in nature. The Fisherian version is mechanistic because it does not explain how changes in V bring about changes in P. On the other hand, the Cambridge version is realistic because it studies the psychological factors which influence k.
It is on account of these differences that Hansen wrote: “It is not true as is often alleged that the cash balance equation is merely the quantity theory in new algebraic dress.”
货币供给的内生、外生性：
There are two representative views.
外生：money supply mainly depends on the intention of monetary authorities and operating tools.and the change of money supply is subject to objective economic process,it means that the quantity of money supply with its change must suit the quantity of money demanded in objective economic process. In a word, it is a question of dealing with the relationship between the objectiveness and subjectiveness.
But regarding this view,we can’t think that money supply itself is an objective economic variable, i. e. , money supply has endogeneity.
内生：The other view holds that money supply is an endogenous variable since the change in money supply is determined together by each micro-entity in economic system and the central bank can’t totally and directly control money supply. So money supply is an endogenous variable and the central bank can only relatively control the money supply.
But this does not mean that the effectiveness of the central bank’s control on money supply can be refuted.
基础货币：
The monetary base or high-powered money（高能货币）
B =
C + R
B stands for monetary base, R for banking system reserves, and
C for currency Held by the public.
the increase and decrease of the quantity of monetary base directly determines the rise and fall of commercial banks’reserves, thus deciding the commercial banks’ capacity of money creation.（中央银行掌握基础货币，基础货币是商业银行创造货币的源头）
影响货币基础的因素
a.The state of international payments（国际支付）
the central bank purchase foreign exchange in order to ease the pressure, which also increases the monetary base（购买外汇资产，增加基础货币）
b. Monetary policy（货币政策）
The central bank affects the monetary base in two aspects: discount (loans) and the open market operations. If the central bank reduces interest rates, commercial banks will borrow more from the central bank, which will increase the monetary base, Or if the central bank purchases securities through the open market operations, the monetary base will increase too
（降低利率就会增加基础货币，购买债券也会增加基础货币）
c. Government spending（政府开支）
影响货币乘数的因素：
超额准备金、现金比率、非支票存款比例
excess reserves rate, cash leakage and the leakage into noncheckable deposits (such as time deposits and savings) besides the required reserve ratio.
1，超额准备金率（e）成反比
商业银行愿意持有多少超额准备金，主要取决于以下几个因素：
（1）持有超额准备金的机会成本大小，即生息资本收益率的高低。

（2）借入准备金的成本大小，主要是中央银行再贴现率的高低
（3）经营风险和资产的流动性。

如果经营风险较大，而现有资产的流动性又较差，商业银行就有必要保留一定的超额准备金，以备应付各种风险
（1）The excess reserves a commercial bank hold mainly depend on the following factors:
1)The opportunity cost and return of holding it.
2)Whether it is easy for banks to borrow funds and the cost of financing.
3)Consideration of operational risk and liquidity of assets.
2，现金比率（k）成反比
即流通中的现金占商业银行活期存款的比率。

k值大小，主要取决于社会公众的资产偏好。

（1）公众可支配的收入水平的高低。

可支配收入越高，需要持有现金越多；
（2）公众对通货膨胀的预期心理。

预期通货膨胀率高，k值就高；反之，k值则低。

（3）社会支付习惯、银行业信用工具的发达程度、社会及政治的稳定性、利率水平等都影响到k
值的变化
The level of cash leakage is determined by the will of holding cash by public, particularly by individuals’ wealth, relative expected rate of return and risks of holding excess reserves and liquidity.
1)With the development of economy national wealth keeps increasing, the public will reduce the holding of cash, which makes the currency ratio fall.
2) The expected rate of return of holding cash is zero while by holding checks or other short-term financial instruments people can get interest or certain bank services. So higher interest rates on other financial assets prevent people from holding cash, which will reduce the currency ratio
3) The uncertainty of economic environment will raise the level of risk which further affects people’s habit of holding cash. When there is financial crisis and high inflation, the public would not like to hold deposit What’s more, currency ratio is also subject to the payment system in a country. In the developed countries, most part of transactions is settled by checks. So the percentage of settlement in cash is very small and is becoming even smaller nowadays。

3，定期存款与活期存款间的比率
一般来说，在其他因素不变的情况下，定期存款对活期存款比率上升，货币乘数就会变大The ratio of leakage into non checkable deposits is deter mined by one’s willingness of holding time deposit and savings, specifically by individuals’wealth, relative expected rate of return
货币供给理论：三个
一、凯恩斯：Keynes thought that money demand was not stable which led to insufficient effective demand. So national governments should regulate the aggregate demand.
二、货币学派：Friedman held that money demand is relatively stable and money supply must be guaranteed stable, too According to the Monetarist School, the core of economic policies is placed on monetary policy, which should be the only important wander-working among all economic policies
单一规则：
所谓单一规则货币政策，即排除利息率、信贷流量、自由准备金等因素，而以一定的货币存量为唯一支配因素的货币政策，公开宣布长期采用一个固定不变的货币供应增长率。

实行单一规则，需要解决的三个问题：第一，如何界定货币数量的范围；第二，如何确定货币的增长率；第三，货币数量增长率是否允许在年内或季节内有所变化。

关于货币增长率的确定，应与经济增长率相适应。

关于货币增长率在年内或季节内是否允许变动
弗里德曼认为，货币增长率一经确定是不能任意允许变动的，如遇特殊情况必须更改时，应该事先宣布尽量缩小变动的幅度。

Friedman assumed that the best choice in controlling money supply was the“single rule” of monetary policy..——excluded other factors, such as interest rates, credit flow, excess reserves on a voluntary basis. monetary policy should just take a certain money stock as the only decisive factor
In order to carry out the “single rule”,——three problems should be solved: the first is how to define the scope of the aggregate money supply; the second is how to decide the increasing rate of money supply and the third is whether or not fluctuation of the increasing rate of money supply is allowed during a certain period, a year or a season.
The solution to the above problems is as follows: firstly, M2 should be the scope of the aggregate money supply; secondly, the increasing rate of money supply should be suited to economic growth rate and thirdly, it couldn’t be changed at will when the increasing rate of。