money in economy/circulation of money/issues brought forward in daily life/learn
money and banking, and master key to analyzing economic issues/guided by Ma
rxism/based on Chinas reality/also study western money and banking theories
Chapter 2 Money and monetary system 9
21 Origin of money 9
money appeared in peoples life several thousand years ago/ancient theor
y o
f origin of money/Marxs study on origin of money:
value and its forms/developm
ent of forms of value and appearance of money/further study is beyond Economics
of Money and Banking
22 Varies of money 15
ancient money/material of money/coin/debased coin/paper money/bank notes
and
paper money issued by the government/deposits which could be used to write chec
ks/use of computers and a society without cash
23 Functions of money 22
value measure/currency unit/price/circulation methods/money demands/integ
rat
ion of value measure and circulation methods/money storage/payment methods/world
money
24 How to define money 29
universal equivalent/tools for social calculation and “vote”/define mon
ey from its functions/money and wealth/money and law/define money with respect to the d
emand of controlling money/reflection of productive relationships
25 Monetary system 36
monetary system and its composition/choice of money material/choice of curren
cy unit/coinage/standard currency and fractional currency/management of other mo
ney in circulation/infinite legal tender and finite legal tender/development of
monetary system/monetary system under centralized planned economy/foundation of
monetary system for Renminbi/euro and its challenge to traditional attitude towa
rd monetary system
Appendix Theory of Money disappearing and of Socialisms need ofmoney 44
raise of the issue/the viewpoint of money disappearing in China/Marx and Enge
ls theory of money disappearing/viewpoint of Lenin and Stalin/establishment of
understanding of developing commercial economy/significance of the theory that socialist countries also need money
Chapter 3 Credit 50
31 Credit and its relationship with money 50
what is credit/credit is an old economic category/emergence of credit/loa
n of subject and loan of money/the appearance of the finance category
32 Usury 53
features of usury/historical attitude toward usury/combat with usury by t
he capitalist class/usury in China
33 Foundation of modern credit 58
“credit economy”/surplus and deficit, credit and debt/individuals in credit
relationship/enterprises in credit relationship/government in credit relationshi
p/credit and debt in international balance of payment/financial institutions as
credit intermediaries/analyses of flow of funds
34 Modern forms of credit 68
commercial credit/commercial papers and their circulation/role and limits
of commercial credit/commercial credit in China/banks credit/bankers note/indi
rect finance and direct finance/sovereign credit/consumer credit
35 Credit and jointstock company 77
jointstock company/jointstock company and credit/separation of owners
hip and management/jointstock companies in China
Chapter 4 Interest and interest rate 82
41 Interest 82
understand interest/the essential of interest/interests transformation
to universal form of income/capitalization of income/price of capital
42 Interest rate and its kinds 87
interest rate and its system/real interest rate and nominal interest rate
/fixed interest rate and floating interest rate/market rate, public rate and offici
al rate/normal rate and prime rate/yearly rate, monthly rate and daily rate/long
term interest rate and shortterm interest rate
43 Simple interest and compound interest 93
concepts and calculation formulae/compound interest reflects the essential c
haracter of interests/two widely used formulae/present value and final value/use
of present value
44 Determine of interest rate 97
Marxs theory on determine of interest rate/western analysis about deter
mine of interest rate/other factors that influence level of interest rate/Chinas
interest rate management system
45 Role of interest rate 104
elasticity of interest rate to savings and to investments/environment and
conditions for interest rate to function smoothly
Chapter 5 Financial markets 108
51 Financial markets and the elements 108
what are financial markets/history of Chinas financial markets/basic el
eme
nts of financial markets/an overview on operation process and functions of finan
cial markets/various types of financial markets
52 Financial instruments 113
characteristics of financial instruments/various of financial instruments/co
mmercial paper/stocks/bonds/price of securities/stock price index/real operation
capital and stocks market value
53 Securities market 121
primary market and secondary market/issue of new securities/securities ex
cha
nge/organization of securities exchanges and trading process/OTC markets/margin
trading/speculation and risk transfer/Chinas securities market
54 Financial derivatives 128
derivatives and originates/quick development of financial derivatives/sort by types of contracts/sort by underlying assets/sort by the sequence of derive/so
rt by trading places/dual effects
55 Financial assets and portfolio 134
financial instruments and financial assets/asset selection/portfolio
Chapter 6 Financial institutions system 140
61 Composition of Chinas financial institutions system 140
concept of financial institutions/composition of the system/Peoples Bank of China/policy banks/stateowned commercial banks/other commercial banks/rural
and urban credit unions/other nonbank financial institutions/insurance compani
es/foreign financial institutions in China
62 Socialist mode of financial system founded by the former Soviet
\ Union 152
Lenins theory on banks nationalization/centralized mode of former Sov
iet Unions bank system
63 The foundation and reform of Chinas socialist financial
\ system 156
Chinas financial system before the foundation of Peoples Republic of
China/foundation o
f new Chinas financial system/the “single bank” financial system/reform of f
inancial system after the year 1979
64 Financial institutions system of western countries 165
composition of financial institutions system of western countries/ce
ntral
ba
nks/deposit money banks/specialized banks/investment banks/savings banks/agricul
tural banks/mortgage banks/import and export banks/insurance companies/credit un
ions/pension funds/mutual funds/features of financial institutions system in dev
eloping countries/bank mergers and acquisitions in western countries
Chapter 7 Deposit Money bank 174
71 Origin and development of commercial bank 174
money exchanger in the ancient times/origin of modern banks/origin, devel
opm
ent and composition of modern commercial banks in the old China/functions of com
mercial banks/Lenins theory on banks new role in imperialistic stage
72 Types and organizations of deposit money banks 179
type of western commercial banks/tendency toward universal banking/organi
za
tion of commercial banks/types and organizations of Chinas deposit money banks
73 Liability business of deposit money banks 183
liability business/absorbing deposits/changes in deposit structures/other
liability business
74 Asset business of deposit money banks 188
asset business/discounts/loans and their types/securitilization/bank loan an
d fund supply to enterprises in China/loan principles/“6C”principles in wester
n commercial banks/security investments/leasing
75 Midbusiness and offbalance sheet business 196
midbusiness/offbalance sheet business/exchange services/letters of cr
edit/collection/trading agency/accepting/trust/financing agent/bank cards/conten
ts a
nd prospects of electronic services by banks
76 Financial innovation 202
innovation to avoid risks/techniques innovation/innovation to avoid gover
nment controls/financial innovation reflects demands of economic development
77 Creation of credit money 205
issue of bank notes by deposit money banks/original deposit and derivativ
e deposit/ deposit money creation under modern financial system/other factors th
at influence
the creation of derivative deposit/the shrink process of derivative deposit
78 The operation and management of deposit money banks 213
deposit money banks are also enterprises/operation principles of commerci
al
banks/asset management and liability management/operation principles of Chinese
banks/deepen the reform of stateowned commercial banks/bad loans and loan risk
classification
Chapter 8 Central banks 222
81 Origins and types of central banks 222
origins and fast developments of central banks/the states strengthening
control over central banks/types of central banks
82 Functions of central banks 227
features and functions of central banks/issuing bank/issuing process of R
MB/
bankers bank/states bank/balance sheet of central banks/appendix: independen
ce of central banks: several countries cases
83 Payment and settlement system under central banking system 234
clearing house/operation process of clearing house/centralbanks respon
sibility of organizing the whole countrys settlement system
84 Money creation process under central banking system 237
monetary base/monetary base and money creation by commercial banking: origin
s and flows/the size of assets of the central bank and the volume of monetary ba
se/multiplier
85 Financial supervision by central banks and deposit insurance 242
financial supervision and its scales/basic principles of financial superv
isi
on/“Basel Accord”and“Core Principles for Effective Banking Supervision”/cent
ral
banks and financial supervision/Peoples Bank of Chinas supervision function/
deposit insurance system in western countries
Chapter 9 Money Demand 249
91 Development of theory of money demand 249
ideas about money demand in ancient China/Marxs theory on money in circ
ula
tion/ Fisher equation and Cambridge equation/ Keyness analysis on money demand
/ Keynes Schools improvement on theory of money demand/ substitution effect an
d income effect/ Friedmans function on money demand
92 Chinas study on theory of money demand 258
understand of Marxs formula about necessary money in circulation/ the come out
of “1∶8”formula and its implications/ a disputable but popular formula/ nominal demand and real demand
93 Macro and micro analysis on money demand 262
micro analysis on money demand/ economical systems impact on micro enti
ties
money demand/ changes in incomes and money demand/ portfolio selection of Chines
e residents/ macro analysis on money demand/ combination of micro and macro ana
lysis on money demand/ money demand is an objective concept in both micro and ma
cro analysis/ is money demand a certainty volume?
94 Funds demand and money demand 270
funds and money/ restudy the meaning of money demand/ answers for different situations
Chapter 10 Money supply 275
101 Measures of money supply 276
currency issue and money supply/ it will make mistakes to take part as wh
ole/ mu
ltiple measures of money supply/ standards and implications of dividing money su
pply into levels/ nominal money supply and real money supply/ money model by the
International Monetary Fund
102 Mechanism and tools of managing money supply 283
direct control on money supply under traditional planned economy/ indirec
t manag
ement of money supply under market economy/ residents money holding behavior a
nd money supply/ enterprises behavior and money supply/ deposit money banks
behavior and money supply/ behavior of Chinas stateowned commercial banks an
d money supply/ scale management/ reexplanation of multiplier formula
103 Fiscal income and expenditure and money supply 294
money issues in revolutionary base area and its fiscal income and expendi
ture/ fiscal deficit decides the volume of cash issuing: a simple theoretical model/ re
lationship between fiscal deficit and money supply in advanced commercial econom
y
104 Exogenous variable or endogenous variable 298
implication of dispute on exogenous variable or endogenous variable/ exog
enous argument of Monetarism and opposite opinions/ is Chinas money supply an exogen
ous variable or an endogenous variable?
Chapter 11 Monetary equilibrium and aggregate demand and
supply 303
111 Monetary equilibrium and disequilibrium 303
meaning of monetary equilibrium and disequilibrium/ Chinas money demand
and supply under centralized planned economy/ micro entities behaviors that l
ead to excess money supply/ differences of reflections of monetary equilibrium q
uestion under different economic systems
112 Money demand and supply and aggregate demand and supply 310
the internal linkage between money supply and aggregate demand/ aggregate
supply
s demand for money/ disequilibrium and price fluctuation/ productivity effect
of money supply and its expanding limit/ contraction effect/ market demand and s
upply and money demand and supply
113 Chinas seek for equilibrium and theoretical study 316
equilibrium opinions toward antiinflation/ aggregate demand and supply
equilib
rium:target of “three equilibrium”theory/ what is ideal equilibrium
Chapter 12 Inflation 321
121 Inflation and its measurement 321
Inflation:an old problem/ controlling hyperinflation at the beginning of
new Chi
nas foundation/ past popular definition of inflation in China and some new ide
as recently/ general definition of inflation in western countries/ classificatio
ns of inflation/ hidden inflation under centralized planned economy/ measurement
of inflation
122 Causes of inflation 327
demand pulled inflation/ cost pushed inflation/ demand and supply jointly
pushed
inflation/ structural inflation/ several opinions in China about causes of infl
ation after the system reform
123 Economic and social effects of inflation 335
inflation and economic growth:dispute on productivity effects/ effects of
forced
savings/ effects of income redistribution/ effects of asset portfolio adjustm
ent/ high inflation and economic and social crises/ prices going up: a boring
problem in economic reform
124 Antiinflationary policies 340
macro contraction: a traditional policy measure/ other policies curing in
flation
/ indexation and related discussions/ Chinese economists countermeasures toward inflation
125 Growth without inflation and deflation 343
is antiinflation an eternal policy target/ no inflation economy/ deflation
Chapter 13 Monetary policy 348
131 Goals of monetary policy 348
what is monetary policy/ goals of monetary policy/ reconciliation and con
flict o
f different goals of monetary policy/ recent opinions on goals of Chinas monet
ary policy/ targeting of inflation
132 Tools of monetary policy 353
reexamine of general tools of monetary policy/ optional tools of moneta
ry poli
cy/ direct control over credit/ indirect instruction on credit/ the choice and use of tools of monetary policy in China
133 Transmission mechanism and intermediary targets of monetary
policy 359
Keynes schools theory of transmission mechanism of monetary policy/ Mon
etarism
s theory of transmission mechanism of monetary policy/ choice of intermediary
targets of monetary policy/ interest rates targets/ money supply/ excessive rese
rve and monetary base
134 Effects of monetary policy 365
time lag of monetary policy/ the impact of money circulation speed/ the c
ountera
ct of microentities expectations/ impact of other economic and political fac
tors/ measures of effects of monetary policy/ the accordance of monetary policy
and fiscal policy/ the changing evaluation of effects of monetary policy in the
west
135 Chinas practice of monetary policy 370
ideas of macroeconomic policy in ancient China/ monetary policy practice
under traditional system/ monetary policy practice since the economic reform/ “reverse
”and “switch on but not move forward”/ “soft landing”
Chapter 14 Finance and economic development 377
141 General relationships between finance and economic develop
ment 378
finance development/ basic indicators measuring finance developmen
t/ interaction of finance development and economic development
142 Financial oppression in developing countries 381
financial oppression: a common phenomenon/ finance is oppressed in co
untries of centralized planned economy systems/ theory of financial oppression/
money demand function of developing countries
143 Financial liberalization 385
financial liberalization/ implications of financial deepening theory/ mai
n conte
nts of financial liberalization in developing countries/ reform of financial lib
eralization in several developing countries/ experiences and lessons from financ
ial liberalization in developing countries/ reform of financial liberalization a
lso spreads to developed countries/ financial liberalization and international f
inancial crises/ Chinas financial reform
Chapter 15 Money in international transactions and relations 394
151 Money is a necessary tool in international exchanges 394
modern world is a open world/ money is a necessary tool in international
exchang
es/ RMB in international transactions and relations
152 Banks and international payments 398
banks play key roles in international payments/ oversea branches and corr
esponde
nt banks serving international payments/ settlement methods
153 Foreign exchange and foreign exchange market 401
foreign exchange and its composition/ foreign exchange market/ foreign ex
change
control before the reform and opening policy/ reform of foreign exchange managem
ent system/ appendix 1: foreign exchange RMB/ appendix 2: foreign exchange certi
ficate
154 Exchange rate 409
foreign exchange quotation statement for RMB/ exchange rate system/ domes
tic val
ue and foreign value/ how exchange rate is determined/ role of exchange rate in
national economy/ foreign exchange risk
155 Exchange rate of RMB 417
historical review of determination of RMB exchange rate/ issues of level
of RMB
exchange rate/ exchange cost of export and market oriented exchange rate of RMB
Chapter 16 International financial system 422
161 International monetary system 422
what is international monetary system/ international monetary system unde
r the goldstandard system/ international monetary system under the goldexchanged sy
stem/ international monetary system with US dollar as the key currency/ terminat
ion of the Bretton Woods System/ issue of international monetary standard/ issue
of exchange rate system/ appendix: Hongkongs linked exchange rate system
162 International financial institutions 430
origins and developments of international financial institutions/ Interna
tional
Monetary Fund/ World Bank/ International Development Association/ International
Finance Corporation/ Asian Development Bank/ African Development Bank
163 International credit 436
international capital flow/ types of forms of international credit/ comme
rcial l
oans/ government loans and IFI loans/ direct investment
164 Globalization of finance industry 441
development of globalization of finance industry/ international developme
nt of b
anks/ European money market/ globalization of financial markets/ supervision iss
ues in globalization of finance industry
Chapter 17 Balance of payments and economic equilibrium 449
171 Balance of payments 449
what is balance of payments/ balance of payments statements/ items of bal
ance of
payments/ Chinas balance of payments
172 Adjustment of balance of payments 457
disequilibrium of balance of payments/ several balances/ causes of disequ
ilibrium
/ equilibrium should be maintained/ policies been carried out and questions should be considered in China/ methods of adjusting balance of payments
173 Relationship between international payments and domestic economic
cycle 462
channels of interconnection between domestic and foreign economies/ balan
ce of trade account and RMB funds/ balance of capital account and RMB funds/ money circulation under an open system
174 International payments and the overall economic equilibrium 468
foreign exchange payments and aggregate demand and supply/ exchange rate
sinfluence on aggregate demand and supply/ adjustment function of foreign exchange payments/ domestic economy is the basis
175 Managing combination parts of international payments and economic
equilibrium 472
export scale and its composition/ size of foreign debt/ level of foreign
exchange reserves/ corresponding monetary and fiscal policies