《經(jīng)濟(jì)學(xué)專業(yè)英語教程（第四版·上）》

Text:FiscalandMonetaryPolicy

（財(cái)政政策與貨幣政策）1.Keywords2.Stabilizationpolicy3.Fiscalpolicy4.Monetarypolicy5.TranslatethefollowingintoChinese6.Questions1.KeywordsinsufficientdemandplannedspendingstabilizationpolicyexpansionarypolicypotentialoutputexpansionarygapcontractionarypolicyfiscalpolicymonetarypolicygovernmentpurchasesfullemploymentmilitaryspendingtransferpaymentsdisposableincometaxcutcapitalformationbudgetdeficittaxcollectionscapitalgoodslegislativeprocessnationaldefenseautomaticstabilizertaxableincomeTheGreatDepressiongovernmentsecuritiesopen-marketoperationsgovernmentbondscommercialbanksfinancialinstitutiondiscountwindowday-to-dayfluctuationdiscountratelegalreserverequirements2.Stabilizationpolicy2.1Definitionofstabilizationpolicy2.2Expansionaryandcontractionarypolicy2.1DefinitionofstabilizationpolicyPoliciesthatareusedtoaffectplannedaggregateexpenditure,withtheobjectiveofeliminatingoutputgaps,arecalledstabilizationpolicies.Thetwomajortoolsofstabilizationpolicyarefiscalpolicyandmonetarypolicy.2.2ExpansionaryandcontractionarypolicyPolicyactionsintendedtoincreaseplannedspendingandoutputarecalledexpansionarypolicies;expansionarypolicyactionsarenormallytakenwhentheeconomyisinrecession.Contractionarypoliciesarepolicyactionsintendedtoreduceplannedspendingandoutput.3.Fiscalpolicy3.1Definitionoffiscalpolicy3.2Compositionoffiscalpolicy3.3Fiscalpolicyasastabilizationtool:Threequalifications3.4Reasonsforfiscalpolicyasastabilizingforce3.1DefinitionoffiscalpolicyFiscalpolicyreferstodecisionsaboutthegovernment’sbudget—howmuchthegovernmentspendsandhowmuchtaxrevenueitcollects.3.2Compositionoffiscalpolicy3.2.1Governmentpurchasesandplannedspending3.2.2Taxes,transfers,andaggregatespending3.2.1GovernmentpurchasesandplannedspendingGovernmentpurchasesofgoodsandservices,beingacomponentofplannedaggregateexpenditure,directlyaffecttotalspending.Ifoutputgapsarecausedbytoomuchortoolittletotalspending,thenthegovernmentcanhelptoguidetheeconomytowardfullemploymentbychangingitsownlevelofspending.3.2.2Taxes,transfers,andaggregatespendingTransferpaymentsarepaymentsmadebythegovernmenttothepublic,forwhichnocurrentgoodsorservicesarereceived.Examplesoftransferpaymentsareunemploymentinsurancebenefits,SocialSecuritybenefits,andincomesupportpaymentstofarmers.Changesintheleveloftaxesortransferscanbeusedtoaffectplannedaggregateexpenditureandthuseliminateoutputgaps.3.3Fiscalpolicyasastabilizationtool:Threequalifications3.3.1Fiscalpolicyandthesupplyside3.3.2Theproblemofdeficits3.3.3Therelativeinflexibilityoffiscalpolicy3.3.1FiscalpolicyandthesupplysideFiscalpolicyaffectsbothplannedspendingandpotentialoutput.Thus,inmakingfiscalpolicy,governmentofficialsshouldtakeintoaccountnotonlytheneedtostabilizeplannedaggregateexpenditurebutalsothelikelyeffectsofgovernmentspending,taxes,andtransfersontheeconomy’sproductivecapacity.3.3.2TheproblemofdeficitsThegovernment’sbudgetdeficitistheexcessofgovernmentspendingovertaxcollections.Sustainedgovernmentdeficitscanbeharmfulbecausetheyreducenationalsaving,whichinturnreducesinvestmentinnewcapitalgoods—animportantsourceoflongruneconomicgrowth.3.3.3TherelativeinflexibilityoffiscalpolicyInreality,changesingovernmentspendingortaxesmustusuallygothroughalengthylegislativeprocess,whichreducestheabilityoffiscalpolicytorespondinatimelywaytoeconomicconditions.Anotherfactorthatlimitstheflexibilityoffiscalpolicyisthatfiscalpolicymakershavemanyotherobjectivesbesidesstabilizingaggregatespending,fromensuringanadequatenationaldefensetoprovidingincomesupporttothepoor.3.4ReasonsforfiscalpolicyasastabilizingforceThefirstisthepresenceofautomaticstabilizers,provisionsinthelawthatimplyautomaticincreasesingovernmentspendingordecreasesintaxeswhenrealoutputdeclines.Taxesandtransferpaymentsalsorespondautomaticallytooutputgaps.Theseautomaticchangesingovernmentspendingandtaxcollectionshelptoincreaseplannedspendingduringrecessionsandreduceitduringexpansions,withoutthedelaysinherentinthelegislativeprocess.Althoughfiscalpolicymaybedifficulttochangequickly,itmaystillbeusefulfordealingwithprolongedepisodesofrecession.4.Monetarypolicy4.1Definitionofmonetarypolicy4.2Compositionofmonetarypolicy4.1DefinitionofmonetarypolicyMonetarypolicyreferstodecisionsaboutthesizeofthemoneysupply.4.2Compositionofmonetarypolicy4.2.1Open-marketoperations4.2.2Discount-ratepolicy4.2.3Changingreserverequirements4.2.1Open-marketoperationsBysellingorbuyinggovernmentsecuritiesintheopenmarket,thecentralbankcanlowerorraisebankreserves.Theseso-calledopen-marketoperationsareacentralbank’smostimportantstabilizinginstrument.Thebondssoldtotheopenmarket.Thisincludesdealersingovernmentbonds,whothenresellthemtocommercialbanks,bigcorporations,otherfinancialinstitutions,andindividuals.4.2.2Discount-ratepolicyWhencommercialbanksareshortofreserves,theyareallowedtoborrowfromthecentralbank.Theseloansarecalledborrowedreserves.Whenborrowedreservesaregrowing,thebanksareborrowingfromthecentralbank,therebyincreasingtotalbankreserves(borrowedplusunborrowedreserves).Conversely,adropinborrowedreservespromotesacontractionintotalbankreserves.Sometimes,thecentralbankmayraiseorlowerthediscountrate,whichistheinterestratechargedonbankborrowingsfromthecentralbank.Formanyyears,thediscountratewasthebellwetherofmonetarypolicy.4.2.3ChangingreserverequirementsReserverequirementshelpthecentralbankconductitsopen-marketoperationsbyensuringastabledemandforreserves.Bysettingreserverequirementsabovethelevelthatbanksdesire,thecentralbankcandeterminethelevelofreservesandcantherebycontrolthemoneysupplymoreprecisely.TheneteffectisanincreaseintheFederalReserve’scontrolovershort-terminterestrates.5.TranslatethefollowingintoChinese(1)Fiscalpolicyreferstodecisionsaboutthegovernment’sbudget—howmuchthegovernmentspendsandhowmuchtaxrevenueitcollects,whereasmonetarypolicyreferstodecisionsaboutthesizeofthemoneysupply.(2)Supply-sidersfocusedontheneedfortaxcuts,arguingthatlowertaxrateswouldleadpeopletoworkharder(becausetheywouldbeallowedtokeepalargershareoftheirearnings),tosavemore,andtobemorewillingtoinnovateandtakerisks,throughtheirargumentsthatlowertaxeswouldsubstantiallyincreasepotentialoutput,withnosignificanteffectonplannedspending.(3)Theseautomaticchangesingovernmentspendingandtaxcollectionshelptoincreaseplannedspendingduringrecessionsandreduceitduringexpansions,withoutthedelaysinherentinthelegislativeprocess.(4)Insettingpolicy,thecentralbankdecideswhethertopumpmorereservesintothebankingsystembybuyingTreasurybills(i.e.,short-termbonds)andlonger-termgovernmentbondsorwhethertotightenm