1

Money
Income
Wealth

Barter
Specialization
Value of money
Internal Value Domestic Purchasing Power
External Value International PP
Foreign Exchange


.. -

.. -
(physical
tangible assets)
Millennium
e-money, credit card


credit instruments bonds, checks
currency
currency media of exchange

 (Money)

( Medium of Exchange)

Anything with an agreed-upon value might be a medium of exchange

Demand Supply
Substitute Product


(Direct Exchange)

(Barter Exchange)
(Indirect Exchange)

1. (Commodity Money)
2. (Coinage)
- Mettalic Money
- Full-bodied Coins
-Token Money


3. (Paper Currency)
- Representative Full-bodied Money
- Fiat Money
4. (Credit Money)
- Current Account
5. (Electronic Money)


1.
2.
3.
4.

Bank note

5.

Electronic funds transfer terminals
Polymer banknotes/Paper banknotes
Travellers cheques
Revenue and postage stamps
Certificates, coupons and tickets of value
Security inks

/
/

10

7
2445 121
2512
11

11

 (Functions of Money)

Purchasing Power

3.
4.

(Medium of Exchange)
( Standard of value and unit of
accounting) Relative price
(store of value)

Given point in time

1.
2.

(Standard of
deferred payments)
Exchange over time

12

PIIGs
Default

13

ARBITRAGE
PURCHASING POWER PARITY
INTEREST RATE PARTIY

14


? -

(Value) maintaining the
purchasing power of official money

15

How money change over time

Quantity of goods and services, you can

purchase
Price index a summary statistic that
reflects changes in the price of a group of
goods and services relative to the price in a
base year Consumer price index (CPI)
Head Line Inflation/ Core Inflation

16

 Euro
transactions costs of exchanging
currencies

50 tax

17

STABILITY

18


(Classic) Says Law
: absolute price

(Keynesian) 2472-2476
The General Theory

+
Store Value

(Monetarist)

19

Milton Freidman

20

Monetarist Milton Friedman

Portfolio management
M1, M2

21

22

 (Demand for money)

(Demand deposits)

1. (Transaction Demand)
2. (Precautionary Demand)
3. (Speculative Demand)

23


(Supply of Money)

24

 VS
(Classic) VS
VS ()

25


(M1)
1. (Currency)
2. (Demand Deposits)

(M2)
1. (M1)
2. (Time Deposits)
( Saving Deposits)

26


(M2A)
- M2 + ( P/N)
(M3)
-

(M2A)
. . . (IFCT) (SIFC)
27


2485

. (Lender of
the last resort)

28

Too big to fail

Lender of Last Resort
Moral Harzard

29

 BASEL I
BASEL II
1. credit rating
rating
2.
Basel I : Credit risk/market risk
Basel II: Credit risk/market risk/operational risk

3. 1
4. 2

30

Default
Bankruptcy

31

32

(Monetary Standards)

33

 (Metallic standard)

(Monometallic standard) 23642472

(Gold coin standard)
(Gold bullion standard)

(Gold exchange
standard)
2468-2474

1 pound sterling =113.0016

1 U.S dollar =23.22
1 pound sterling = 4.87 dollar

34

 (The Monetary Standard )

2
1. (Metallic Standard )
2
1.1 (Mono Metallic Standard )

2
(1) (Gold Coin Standard)
(2) (Gold Bullion Standard )
(3) (Gold Exchange Standard)

1.2 (Bimetallic Standard )

2. (Nom- Metallic Standard )

3
- ( Paper Standard )
- (Exchange Standard )
- (Commodity Reserve
Standard )

 (Metallic Standard )
- (Mono-Metallic Standard)
2

(1) (Gold Standard )

( Par Value )
3
(1.1) (Gold Coin Standard )

(1.2) (Gold Bullion Standard )

(1.3) (Gold Exchange Standard )

-
-

- ( Bimetallic Standard )

(1)

(2)

(3)

-

-

( 2)
-

 (Nom Metallic Standard )

- (Paper Standard )
2
(1) ( Pure Paper Standard )

(2) (Gold Reserve

Standard )

- (Exchange Standard )

- (Commodity Reverse Standard )

 ( The Monetary Standard of

Thailand )
- .. 2393- .. 2445



- .. 2455 .. 2484

- .. 2484 .. 2493
- .. 2493


()

(Silver) (Gold)

46

 (Greshams Law)

:
(undervalued)
:
(Overvalued)

47

 (Greshams Law)
:

15.5

15

48

49

 3
1). (Pegged Exchange
Rate) ( 2 - 2540)
2

2527 - 2540
(Exchange Equalization Fund : EEF)
.

50

2). (Monetary Targeting) (

2540 - 2543)
2 2540

(International Monetary Fund : IMF) Policy
Anchor Monetary Targeting



(Ultimate Objectives)
.

51

3). (Inflation Targeting) (23

2543 - )







.

52

VS
VS

53

1.

2.
3.

Deficit Unit (DU)

Surplus Unit (SU)

SU DU

VS

54

(Total utility)
(capital formation)
(Financial Investment)
(Real Investment)

55

 (differences
in marginal productivity of capital, MPK)

(diseconomies of small scale

56


Financial instrument
(equity claims)

(debt claim)

57


, , ,
1.
1.1 (Individual Credit)
-

1.2 (commercial Credit)

-
1.3 (Finance Credit)
- . .
.. .
58

2.
2.1 (Consumer Credit)
-
2.2 (Government Credit)
- . ()
( )
2.3 (Business Credit)
-
- (Commercial Credit)
(Investment Credit)

59

3. (Maturity Period)
3.1 (Demand Credit)
-
-

Liquidity
3.2 (Short-Term Credit)
- 1
- (Treasury Bills)

60

3. (Maturity Period)
3.3 (Intermediate Credit)
- 1 5
-
5
3.4 (Long -Term Credit)
- 1
-

61

4.
4.1 (Unsecured Credit)
-

4.2 (Secured Credit) Collateral

-

5.
5.1 (Public credit)
5.2 (Private credit)

62

1.
2.

(Parole Credit)
(Open-Book Credit)

63


1. (Overdraft OD)

.

64


2. (term Loan)
.

65


1. (Promissory Note)

2. (Bill of Exchange)

(drawer) (Drawee)
(Payee)
(Cheque

- : D/A (Document against acceptance)
D/P
(Document

against
Payment)

66

 Bank draft, Sight Bill, Time

bill
(Cheque)

67

Government bond, Corporate bond

mortgage bond

Collateral trust bond

Hybrid
(common stock)

68

 4C
Character
Collateral
Condition
Capacity

69


Negotiability
reversibility

Marketability

70

Financial Instrument

4
1. (Maturity)
2. (Liquidity)
3. (Risk)
4. (Yield)

71

1. (Maturity)
-

-
2. (Liquidity)
-

-
1) /
2)
3)

72

Risk
Default risk
Pre-paid risk
Bankruptcy risk
Credit risk

73

3. (Risk)
-
1) (Default risk or Credit risk)
2) (Market Risk)
-
1) / ()
2)
3)
Corporate Governance
Sovereign Bond

74

4.
-

(Yield)
VS
VS
() VS
....
Callable Bonds

75


1. (Direct Finance)
(Ultimate Lender)
(Ultimate Borrower)

76

2. (Indirect Finance)
/ (Financial
Intermediary)
1

1) Macth Demand & Supply

2)
3)
4)

77


1.

2.

2.1
2.2
(Economies of scale)

78


3.

79

 (Demand)
1. (Price level), +
2. (real income, Y), +
3. (interest rate, i), 4.

(The cost of equity financing, e), +

5. (Expected inflation,Z),+
6. (Fiscal Policy, D) +
Ld = f( P, Y, I, e, Z,D)

80

 (Supply)

(Price level), +
(real income, Y), +
(interest rate, i), +
(Expected inflation,Z), (Fiscal Policy, D) +
Ls = f( P, Y, I, e, Z,D)

81