米什金货币银行学 电子版
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货币银行学 米什金 第一章PPT
• A continual rise in the price level (inflation) affects all economic players • Data shows a connection between the money supply and the price level
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• Recessions (unemployment) and expansions affect all of us • Monetary Theory ties changes in the money supply to changes in aggregate economic activity and the price level
• Monetary policy is the management of the money supply and interest rates
– Conducted in the U.S. by the Federal Reserve System (Fed)
• Fiscal policy deals with government spending and taxation
– Banks: accept deposits and make loans – Other Financial Institutions: insurance companies, finance companies, pension funds, mutual funds and investment banks
• Financial Innovation: in particular, the advent of the information age and efinance
Copyright © 2010 Pearson Addison-Wesley. All rights reserved.
• Recessions (unemployment) and expansions affect all of us • Monetary Theory ties changes in the money supply to changes in aggregate economic activity and the price level
• Monetary policy is the management of the money supply and interest rates
– Conducted in the U.S. by the Federal Reserve System (Fed)
• Fiscal policy deals with government spending and taxation
– Banks: accept deposits and make loans – Other Financial Institutions: insurance companies, finance companies, pension funds, mutual funds and investment banks
• Financial Innovation: in particular, the advent of the information age and efinance
米什金货币银行学第18章-货币政策目标及工具
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Pegging of Interest Rates: 1942-51
1. To help finance war, T-bill at 3/8%, T-bond at 2 1/2% 2. Fed-Treasury Accord in March 1951
Chapter 18
Conduct of Monetary Policy: Goals and Targets
Goals of Monetary Policy
Goals
1. High Employment 2. Eility 4. Interest Rate Stability 5. Financial Market Stability 6. Foreign Exchange Market Stability Goals often in conflict
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18-10
Taylor Rule and Fed Funds Rate
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18-11
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18-2
Central Bank Strategy
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18-3
Money Supply Target
Discovery of Open Market Operations
Pegging of Interest Rates: 1942-51
1. To help finance war, T-bill at 3/8%, T-bond at 2 1/2% 2. Fed-Treasury Accord in March 1951
Chapter 18
Conduct of Monetary Policy: Goals and Targets
Goals of Monetary Policy
Goals
1. High Employment 2. Eility 4. Interest Rate Stability 5. Financial Market Stability 6. Foreign Exchange Market Stability Goals often in conflict
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18-10
Taylor Rule and Fed Funds Rate
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18-11
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18-2
Central Bank Strategy
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18-3
Money Supply Target
Discovery of Open Market Operations
米什金货币银行学第6章-利率的期限结构
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Term Structure Facts to be Explained
1. Interest rates for different maturities move together over time 2. Yield curves tend to have steep upward slope when short rates are low and downward slope when short rates are high 3. Yield curve is typically upward sloping Three Theories of Term Structure 1. Expectations Theory(理性预期的利率结构理论) (理性预期的利率结构理论) 2. Segmented Markets Theory 3. Liquidity Premium (Preferred Habitat) Theory
Chapter 6
The Rterest Rates
Risk Structure of Long-Term Bonds in the United States
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Tax Advantages of Municipal Bonds
由于州具有相对独立的法律体系, 由于州具有相对独立的法律体系,导致了市政债券具有税收优势 .这里并没有考虑到市政债券的违约风险. ©这里并没有考虑到市政债券的违约风险. 2006 Pearson Addison-Wesley. All rights reserved 6-7
Term Structure Facts to be Explained
1. Interest rates for different maturities move together over time 2. Yield curves tend to have steep upward slope when short rates are low and downward slope when short rates are high 3. Yield curve is typically upward sloping Three Theories of Term Structure 1. Expectations Theory(理性预期的利率结构理论) (理性预期的利率结构理论) 2. Segmented Markets Theory 3. Liquidity Premium (Preferred Habitat) Theory
Chapter 6
The Rterest Rates
Risk Structure of Long-Term Bonds in the United States
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Tax Advantages of Municipal Bonds
由于州具有相对独立的法律体系, 由于州具有相对独立的法律体系,导致了市政债券具有税收优势 .这里并没有考虑到市政债券的违约风险. ©这里并没有考虑到市政债券的违约风险. 2006 Pearson Addison-Wesley. All rights reserved 6-7
米什金货币银行学第八章金融结构的经济学分析
8-3
© 2016 Pearson Education Ltd. All rights reserved.
本章学习目标
一个健康有活力的经济需要这样一个金融体系， 它能够把资金从储蓄者转移到拥有生产性投资机会 的人手中。但是，金融体系如何能够确保把你辛辛 苦苦积累的储蓄转移到生产性投资者波拉的手中而 不是乞丐本尼的手中呢？这就是本章要解答的问题。 通过本章的学习，你应该了解金融市场的信息不对 称问题，掌握解决信息不对称问题的方法。
8-12 © 2016 Pearson Education Ltd. All rights reserved.
四、次品车问题：逆向选择如何影响金融机构
2.逆向选择问题的解决办法
• 在金融市场中表现为逆向选择的信息不对称问题，有助于解释金 融市场是经济中受到最严格监管的部门之一的原因（事实5）。 但政府的监管还是不能彻底消灭逆向选择问题。 • 金融中介机构 金融中介机构（比如银行）是生产公司信息的 专家，从而能分辨出信贷风险的高低，进而它们能够从存款者那 里获得资金，再将资金贷放给优质公司。 • 我们对逆向选择的分析说明，总体而言，金融中介机构（尤其是 银行，持有大量非交易贷款）在将资金融通给企业方面，发挥比 证券市场更为重要的作用。这样我们就解开了事实3和事实4的 谜底:为何间接融资比直接融资更重要，以及为什么银行是企业 外部融资最重要的来源。
8-14
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五、道德风险如何影响债权合约和股权合约的选择
1.股权合约中的道德风险：委托-代理问题
• 如果经理只拥有其所在公司很小一部分的股权，拥有大部分 股权的股东（被称为委托人）与公司经理（所有者的代理人） 的利益就会出现矛盾。所有权和控制权的分离就会产生道德 风险，这是因为拥有控制权的经理（代理人）会从自身利益 出发而不是从股东（委托人）的利益出发行事，公司经理对 利润最大化的追求远没有股东们那么强烈。
Mishkin 米什金 货币银行学 课件
3
How Asymmetric Information Explains Banking Regulation
7. Consumer Protection
A. StaБайду номын сангаасdardized interest rates (APR) B. Prevent discrimination: e.g., CRA 8. Restrictions on Competition to Reduce Risk-Taking A. Branching restrictions B. Separation of banking and securities industries in the past: Glass-Steagall
International Banking Regulation 1. Bank regulation abroad similar to ours 2. Particular problem of regulating international banking e.g., BCCI scandal
11
Banking Crises Worldwide
12
Cost of Banking Crises in Other Countries
13
14
4
Major Banking Legislation in U.S.
5
Major Banking Legislation in U.S.
6
Bank Failures
7
Why a Banking Crisis in 1980s?
Early Stages 1. Decreasing profitability: banks take risk to keep profits up 2. Deregulation in 1980 and 1982, more opportunities for risk taking 3. Innovation of brokered deposits enabled circumvention of $100,000 insurance limit 4. i , net worth of S&Ls A. Insolvencies B. Incentives for risk taking Result: Failures and risky loans Later Stages: Regulatory Forbearance 1. Regulators allow insolvent S&Ls to operate because A. Insufficient funds B. Sweep problems under rug C. FHLBB cozy with S&Ls 2. Huge increase in moral hazard for zombie S&Ls: now have incentive to “bet the bank” 3. Zombies hurt healthy S&Ls A. Raise cost of funds B. Lower loan rates 4. Outcome: Huge losses
How Asymmetric Information Explains Banking Regulation
7. Consumer Protection
A. StaБайду номын сангаасdardized interest rates (APR) B. Prevent discrimination: e.g., CRA 8. Restrictions on Competition to Reduce Risk-Taking A. Branching restrictions B. Separation of banking and securities industries in the past: Glass-Steagall
International Banking Regulation 1. Bank regulation abroad similar to ours 2. Particular problem of regulating international banking e.g., BCCI scandal
11
Banking Crises Worldwide
12
Cost of Banking Crises in Other Countries
13
14
4
Major Banking Legislation in U.S.
5
Major Banking Legislation in U.S.
6
Bank Failures
7
Why a Banking Crisis in 1980s?
Early Stages 1. Decreasing profitability: banks take risk to keep profits up 2. Deregulation in 1980 and 1982, more opportunities for risk taking 3. Innovation of brokered deposits enabled circumvention of $100,000 insurance limit 4. i , net worth of S&Ls A. Insolvencies B. Incentives for risk taking Result: Failures and risky loans Later Stages: Regulatory Forbearance 1. Regulators allow insolvent S&Ls to operate because A. Insufficient funds B. Sweep problems under rug C. FHLBB cozy with S&Ls 2. Huge increase in moral hazard for zombie S&Ls: now have incentive to “bet the bank” 3. Zombies hurt healthy S&Ls A. Raise cost of funds B. Lower loan rates 4. Outcome: Huge losses
米什金货币银行学 电子版
Copyright © 2003 Addison Wesley
TM 1- 10
How We Study Money and Banking
Basic Anapproach to the demand for assets
2. Concept of equilibrium
Aggregate Price Level
nominal GDP GDP Deflator =
real GDP
GDP Deflator =
$9 trillion $6 trillion
Consumer Price Index (CPI)
= 1.50 price of “basket” of goods and services
3. Basic supply and demand approach to understand behavior in financial markets
4. Search for profits
5. Transactions cost and asymmetric information approach to financial structure
2. Affect personal wealth and behavior of business firms
Why Study Banking and Financial Institutions? 1. Financial Intermediation
Helps get funds from savers to investors
6. Aggregate supply and demand analysis
Features
1. Case studies
货币银行学 米什金 14章
Net effect on monetary liabilities is zero Reserves are changed by random fluctuations Monetary base is a more stable variable
Reserves
-$100
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14-9
Shifts from Deposits into Currency
Nonbank Public Assets Checkable deposits Currency -$100 +$100 Federal Reserve System Assets Liabilities Currency in circulation +$100 Liabilities Assets Reserves Banking System Liabilities -$100 Checkable deposits -$100
14-8
Open Market Sale
Nonbank Public Federal Reserve System
Assets
Securities Currency +$100 -$100
Liabilities
Assets
Securities
Liabilities
-$100 Currency in circulation -$100
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米什金货币银行学Topic 1a
批注本地保存成功开通会员云端永久保存去开通
topic 1a
Chapter 2 :An Overview of the Financial System
School of Finance, Shanghai University of
Finance and Economics
Copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
1.
A key feature distinguishing equity from debt is that the equity holders are the residual claimants: the firm must make payments to its debt holders before making payments to its equity holders.
Байду номын сангаас
Copyright @ 2009 School of Finance, SUFE
Structure of Financial Markets
1. 2. 3.
4.
Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets
copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
topic 1a
Chapter 2 :An Overview of the Financial System
School of Finance, Shanghai University of
Finance and Economics
Copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
1.
A key feature distinguishing equity from debt is that the equity holders are the residual claimants: the firm must make payments to its debt holders before making payments to its equity holders.
Байду номын сангаас
Copyright @ 2009 School of Finance, SUFE
Structure of Financial Markets
1. 2. 3.
4.
Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets
copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
Copyright @ 2009 School of Finance, SUFE
货币银行学 米什金 11章
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11-13
FIGURE 1 Bank Failures in the United States, 1934–2008
Source: /bank/historical/bank/index.html.
Assessment of Risk Management
• Greater emphasis on evaluating soundness of management processes for controlling risk • Trading Activities Manual of 1994 for risk management rating based on
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11-6
Financial Supervision: Chartering and Examination
• Chartering (screening of proposals to open new financial institutions) to prevent adverse selection • Examinations (scheduled and unscheduled) to monitor capital requirements and restrictions on asset holding to prevent moral hazard
– Bank regulations
• Promote diversification • Prohibit holdings of common stock
米什金货币银行学
Copyright © 2003 Addison Wesley
TM 2- 7
Asymmetric Information: Adverse Selection,and Moral Hazard
Adverse Selection 1. Before transaction occurs 2. Potential borrowers most likely to produce adverse outcomes are ones most likely to seek loans and be selected
Copyright © 2003 Addison Wesley TM 2- 3
Money Market Instruments
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TM 2- 4
Capital Market Instruments
Copyright © 2003 Addison Wesley
Copyright © 2003 Addison Wesley
TM 2- 6
Function of Financial Intermediaries
Financial Intermediaries 1. Engage in process of indirect finance 2. More important source of finance than securities markets 3. Needed because of transactions costs and asymmetric information Transactions Costs 1. Financial intermediaries make profits by reducing transactions costs 2. Reduce transactions costs by developing expertise and taking advantage of economies of scale
米什金货币银行学第7章-外汇市场
Chapter 7
The Foreign Exchange Market
Foreign Exchange Rates
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19-2
The Foreign Exchange Market
Definitions: 1. Spot exchange rate 2. Forward exchange rate 3. Appreciation 4. Depreciation Currency appreciates, country’s goods prices ↑ abroad and foreign goods prices ↓ in that country 1. Makes domestic businesses less competitive 2. Benefits domestic consumers FX traded in over-the-counter market 1. Trade is in bank deposits denominated in different currencies
© 2006 Pearson Addison-Wesley. All rights reserved 19-3
Law of One Price
Example: American steel $100 per ton, Japanese steel 10,000 yen per ton If E = 50 yen/$ then prices are: American Steel In U.S. In Japan $100 5000 yen Japanese Steel $200 10,000 yen
The Foreign Exchange Market
Foreign Exchange Rates
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19-2
The Foreign Exchange Market
Definitions: 1. Spot exchange rate 2. Forward exchange rate 3. Appreciation 4. Depreciation Currency appreciates, country’s goods prices ↑ abroad and foreign goods prices ↓ in that country 1. Makes domestic businesses less competitive 2. Benefits domestic consumers FX traded in over-the-counter market 1. Trade is in bank deposits denominated in different currencies
© 2006 Pearson Addison-Wesley. All rights reserved 19-3
Law of One Price
Example: American steel $100 per ton, Japanese steel 10,000 yen per ton If E = 50 yen/$ then prices are: American Steel In U.S. In Japan $100 5000 yen Japanese Steel $200 10,000 yen
Mishkin 米什金 货币银行学 课件
Estimating the risk-free rate and the market risk premium
Proxy for risk-free rate is the yield on newly issued Treasury bonds The market risk premium, or (Rm-Rf), can be estimated using a long-term average of historical data.
12
Rational expectation (RE) = expectation that is optimal forecast
Efficient Markets Hypothesis
RET = RET =
e
Pt+1 – Pt + C Pt
Pet+1 – Pt + C Pt
(1)
Rational Expectations implies: Pet+1 = Poft+1 RETe = RETof
Tests of the Efficient Market Hypothesis (EMH) Test of weak-form
Searches for non-random patterns in prices Cannot find dependencies that can overcome transaction costs
Semistrong-form efficiency
Security prices reflect all public information
Strong-form efficiency
Security prices reflect all information
Proxy for risk-free rate is the yield on newly issued Treasury bonds The market risk premium, or (Rm-Rf), can be estimated using a long-term average of historical data.
12
Rational expectation (RE) = expectation that is optimal forecast
Efficient Markets Hypothesis
RET = RET =
e
Pt+1 – Pt + C Pt
Pet+1 – Pt + C Pt
(1)
Rational Expectations implies: Pet+1 = Poft+1 RETe = RETof
Tests of the Efficient Market Hypothesis (EMH) Test of weak-form
Searches for non-random patterns in prices Cannot find dependencies that can overcome transaction costs
Semistrong-form efficiency
Security prices reflect all public information
Strong-form efficiency
Security prices reflect all information
米什金货币银行学第2章-金融系统概述
2-7
金融系统的特征:市场、 金融系统的特征:市场、中介与公司
不同金融系统特征的权衡
美国 英国 日本 法国 德国
金融市场 竞争 效率 公共信息 存在“搭便车” 存在“搭便车”行为 企业外部控制
中介 保险 稳定性 私人信息 不存在“搭便车” 不存在“搭便车”行为 企业自治
资料来源：《比较金融系统》 P19， D.Gale著 资料来源：《比较金融系统》,P19，F.Allen and D.Gale著，中国 ：《比较金融系统 人民大学出版社，2002。 人民大学出版社，2002。
主银行系统 开户银行系统
资料来源：《比较金融系统》 P4， D.Gale著 资料来源：《比较金融系统》,P4，F.Allen and D.Gale著，中国人 ：《比较金融系统 民大学出版社，2002。 民大学出版社，2002。
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© 2006 Pearson Addison-Wesley. All rights reserved
2-9
金融系统功能的效率衡量
• “正确”的金融证券被创造出来并以“正确” 正确”的金融证券被创造出来并以“正确” 的价格从“适当”的资金赤字单位向“适当” 的价格从“适当”的资金赤字单位向“适当” 的资金盈余单位转移。这一过程越顺利， 的资金盈余单位转移。这一过程越顺利，表明 金融体系具有高配置效率 配置效率(Allocation 金融体系具有高配置效率 Efficiency)。 。 • 从储蓄者流向借款者用于投资的资金流量越大， 从储蓄者流向借款者用于投资的资金流量越大， 运行效率（ 金融系统具有高运行效率 金融系统具有高运行效率（Function Efficiency）。 ）
米什金货币银行学第八章金融结构的经济学分析 ppt课件
•Recognize the principal-agent problem arising from moral hazard in equity contracts and summarize the methods for reducing it.
•Summarize the methods used to reduce moral hazard in debt
图8-1 非金融类工商企业的外部资金来源：美国与德国、 日本和加拿大的比较
8-6
© 2016 Pearson Education Ltd. All rights reserved.
一、世界各国金融结构的基本事实
从中，我们可以发现八个谜团：
1 对于公司企业而言，股票不是最为重要的外部融资来源。
2 发行可流通的债务和股权证券不是企业为其经营活动融 资的主要途径。
Chapter 8
金融结构的 经济学分析
20-1 © 2016 Pearson Education Ltd. All rights reser反应：7000亿美元的一揽子救助计划
• 第三篇概述金融机构在整体经济运行过程中所发挥的 核心作用。次贷危机突出表现了金融体系随时间变迁的过 程，它由金融创新而生，并且给经历着金融危机的人带来 了深刻的教训。
8-2
© 2016 Pearson Education Ltd. All rights reserved.
第三篇 金融机构
• 第8章将分析美国和世界其他国家的金融结构。第9章将建 立用于解释金融危机变化机制（特别是2007~2008年新近 的次贷危机）的分析框架。第10章将考察银行的主要业务和 操作过程。第11章将扩展第8章中的经济分析框架一考察银 行监管的动机，进而分析监管过程出现的缺陷。第12章考察 了美国银行体系的历史发展轨迹和银行的国际化发展。
•Summarize the methods used to reduce moral hazard in debt
图8-1 非金融类工商企业的外部资金来源：美国与德国、 日本和加拿大的比较
8-6
© 2016 Pearson Education Ltd. All rights reserved.
一、世界各国金融结构的基本事实
从中，我们可以发现八个谜团：
1 对于公司企业而言，股票不是最为重要的外部融资来源。
2 发行可流通的债务和股权证券不是企业为其经营活动融 资的主要途径。
Chapter 8
金融结构的 经济学分析
20-1 © 2016 Pearson Education Ltd. All rights reser反应：7000亿美元的一揽子救助计划
• 第三篇概述金融机构在整体经济运行过程中所发挥的 核心作用。次贷危机突出表现了金融体系随时间变迁的过 程，它由金融创新而生，并且给经历着金融危机的人带来 了深刻的教训。
8-2
© 2016 Pearson Education Ltd. All rights reserved.
第三篇 金融机构
• 第8章将分析美国和世界其他国家的金融结构。第9章将建 立用于解释金融危机变化机制（特别是2007~2008年新近 的次贷危机）的分析框架。第10章将考察银行的主要业务和 操作过程。第11章将扩展第8章中的经济分析框架一考察银 行监管的动机，进而分析监管过程出现的缺陷。第12章考察 了美国银行体系的历史发展轨迹和银行的国际化发展。
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ator = GDP Deflator = nominal GDP real GDP = 1.50 price of “basket” of goods and services
TM 1- 12
$9 trillion $6 trillion Consumer Price Index (CPI)
Copyright © 2003 Addison Wesley
TM 1- 10
How We Study Money and Banking
Basic Analytic Framework
1. Simplified approach to the demand for assets 2. Concept of equilibrium 3. Basic supply and demand approach to understand behavior in financial markets 4. Search for profits 5. Transactions cost and asymmetric information approach to financial structure 6. Aggregate supply and demand analysis
Copyright © 2003 Addison Wesley
TM 1- 5
Money and Business Cycles
Copyright © 2003 Addison Wesley
TM 1- 6
Money and the Price Level
Copyright © 2003 Addison Wesley
Copyright © 2003 Addison Wesley
TM 1- 7
Money Growth and Inflation
Copyright © 2003 Addison Wesley
TM 1- 8
Money Growth and Interest Rates
Copyright © 2003 Addison Wesley
TM 1- 9
Budget Deficits and Monetary Policy
Features
1. 2. 3. 4. 5. Case studies Applications Special-interest boxes Following the Financial News boxes Reading the Wall Street Journal
TM 1- 11
Copyright © 2003 Addison Wesley
Total income of factors of production (land, capital, labor) during year
Distinction Between Nominal and Real
Nominal = values measured using current prices Real = quantities, measured with constant prices
Copyright © 2003 Addison Wesley TM 1- 2
Bond Market
Copyright © 2003 Addison Wesley
TM 1- 3
Stock Market
Copyright © 2003 Addison Wesley
TM 1- 4
Foreign Exchange Market
Helps get funds from savers to investors
2. Banks and Money Supply
Crucial role in creation of money
3. Financial Innovation Why Study Money and Monetary Policy? 1. Influence on business cycles, inflation, and interest rates
chapter 1
Why Study Money, Banking, and Financial Markets?
Why Study Financial Markets? 1. Channel funds from savers to investors, thereby promoting economic efficiency 2. Affect personal wealth and behavior of business firms Why Study Banking and Financial Institutions? 1. Financial Intermediation
Appendix: Definitions
Aggregate Output
Gross Domestic Product (GDP) = Value of all final goods and services produced in domestic economy during year
Aggregate Income
TM 1- 12
$9 trillion $6 trillion Consumer Price Index (CPI)
Copyright © 2003 Addison Wesley
TM 1- 10
How We Study Money and Banking
Basic Analytic Framework
1. Simplified approach to the demand for assets 2. Concept of equilibrium 3. Basic supply and demand approach to understand behavior in financial markets 4. Search for profits 5. Transactions cost and asymmetric information approach to financial structure 6. Aggregate supply and demand analysis
Copyright © 2003 Addison Wesley
TM 1- 5
Money and Business Cycles
Copyright © 2003 Addison Wesley
TM 1- 6
Money and the Price Level
Copyright © 2003 Addison Wesley
Copyright © 2003 Addison Wesley
TM 1- 7
Money Growth and Inflation
Copyright © 2003 Addison Wesley
TM 1- 8
Money Growth and Interest Rates
Copyright © 2003 Addison Wesley
TM 1- 9
Budget Deficits and Monetary Policy
Features
1. 2. 3. 4. 5. Case studies Applications Special-interest boxes Following the Financial News boxes Reading the Wall Street Journal
TM 1- 11
Copyright © 2003 Addison Wesley
Total income of factors of production (land, capital, labor) during year
Distinction Between Nominal and Real
Nominal = values measured using current prices Real = quantities, measured with constant prices
Copyright © 2003 Addison Wesley TM 1- 2
Bond Market
Copyright © 2003 Addison Wesley
TM 1- 3
Stock Market
Copyright © 2003 Addison Wesley
TM 1- 4
Foreign Exchange Market
Helps get funds from savers to investors
2. Banks and Money Supply
Crucial role in creation of money
3. Financial Innovation Why Study Money and Monetary Policy? 1. Influence on business cycles, inflation, and interest rates
chapter 1
Why Study Money, Banking, and Financial Markets?
Why Study Financial Markets? 1. Channel funds from savers to investors, thereby promoting economic efficiency 2. Affect personal wealth and behavior of business firms Why Study Banking and Financial Institutions? 1. Financial Intermediation
Appendix: Definitions
Aggregate Output
Gross Domestic Product (GDP) = Value of all final goods and services produced in domestic economy during year
Aggregate Income