DEEL 3 / SECTION 3

GELD, DIE EKONOMIE EN

MONETÊRE BELEID
MONEY, THE ECONOMY AND
MONETARY POLICY

Arnold 12–15
3.1 Geld en banke / Money and banking
Arnold: Hf 12 / Arnold: Ch 12
• Geld: Wat is dit? / Money: What is it?
• Definisie van geldvoorraad / Defining money supply
• Ontwikkeling van die bankwese / How banking developed beskrywing / description
• Die geldskeppingsproses / The money creation process

3.2 Die Suid-Afrikaanse Reserwebank / The South African Reserve Bank

Arnold: Hf 13 / Arnold: Ch 13

3.3 Geld en die ekonomie / Money and the economy

Arnold: Hf 14 / Arnold: Ch 14
• Geld en die prysvlak / Money and the price level
• Monetarisme / Monetarism
• Inflasie / Inflation
• Geld en rentekoerse / Money and interest rates teorie / theory
3.4 Monetêre beleid / Monetary policy
Arnold: Hf 15 / Arnold: Ch 15
• Die geldmark / The money market
• Transmissiemeganismes / Transmission mechanisms
• Monetêre beleid en die probleem van inflasionêre en resessionêre gapings / Monetary policy and
the problem of inflationary and recessionary gaps beleid / policy
• Monetêre beleid en die aktivistiese / nie-aktivistiese debat / Monetary policy and the activist /
non-activist debate
GELD, BANKE EN DIE FINANSIËLE STELSEL /
MONEY, BANKING AND THE FINANCIAL
SYSTEM
Wat is verkeerd met die volgende
vraag en stellings?

1. Hoeveel geld het jy verlede jaar verdien?

2. Die meeste van haar geld is in eiendom.
3. Dit is moeilik om geld te kry in vandag se
verbandmark.

Geld, inkome, rykdom en krediet het NIE

dieselfde betekenis nie.
What’s wrong with this picture?

1. How much money did you earn last year?

2. Most of her money is tied up in real estate.
3. It sure is difficult to get money in today’s
tight mortgage market.

Money, income, credit and wealth do NOT mean

the same thing.
Definisie van geld
• Wat is geld dan?
• Geld is: Enige item wat algemeen aanvaar
word as betaling vir goedere en dienste en
gebruik kan word ter vereffening van skuld.
Definition of money
• What then, is money?
• Money is: Any good that is widely accepted for
purposes of exchange (payment for goods and
services) and can be used in the repayment of
debt.
Funksies van geld
Betaalmiddel
• Geld verminder transaksiekoste. Waarom?

Rekeneenheid
• Algemene maatstaf waarin waardes gemeet word
• Hoef nie die waarde van een produk i.t.v. ander produkte te
weet nie, slegs die waarde relatief i.t.v geldeenheid

Waardedraer
• Geld behou sy waarde oor tyd (behalwe as daar inflasie is)
Functions of money
Medium of exchange
• Money reduces transaction costs… Why?

Unit of account
• Common measure in which values are expressed
• Do not have to know the value of one good i.t.o. other goods,
but only of the good i.t.o. the value of the monetary unit

Store of value
• Money maintains its value over time (except during
inflationary periods)
Van ‘n ruilhandel- na ‘n geldekonomie
• Arnold vra: ‘Did a king or queen issue an edict:
“Let there be money”?’ (bl. 253)
• Lees bl 253 – 254 om meer uit te vind.
• Beantwoord nou die volgende vrae:
1. Waarom is transaksiekoste laer in ‘n
geldekonomie as in ‘n ruilhandel ekonomie?
2. Wat is ‘n dubbele ooreenstemming van
behoeftes en waarom is dit irrelevant in ‘n
geldekonomie?
From a barter to a money economy
• Arnold asks: ‘Did a king or queen issue an
edict: “Let there be money”?’ (p. 253)
• Read pp. 253 – 254 to find out more.
• Now answer the following questions:
1. Why are transaction costs less in a money
economy than in a barter economy?
2. What is a double coincidence of wants and why
is it irrelevant in a money economy?
Geld, ontspanning en uitset
• Daar is meer tyd vir ontspanning en werk in ‘n
geldekonomie. Waarom?
• Laer transaksiekoste.
Money, leisure and output
• There is more time for work and leisure in a
money economy. Why?
• Lower transaction costs.
Wat gee aan geld sy waarde?
What Gives Money Its Value?
Geld (insluitende papiergeld) word NIE meer
gerugsteun deur kommoditeite (bv. goud) nie.
[Lees bl 266 “I Thought Money Had To Be Backed By
Gold To Have Value.”]
Money (including paper money) is NOT backed
by commodities (e.g. gold) anymore.
[Read p. 266 “I Thought Money Had To Be Backed By
Gold To Have Value.”]
Klassifikasie van die geldvoorraad
Geldvoorraad word op verskeie maniere gemeet
afhangend van watter funksies ons in ag neem:

– Geld as ____________
[M ]

– Breër: Geld as ____________ en

____________
[M ]

– ____________ maatstaf: [M ]
Defining the money supply
Money supply can be measured in different ways
depending on which functions we include:

– Money as __________________________
[M ]

– Broader: Money as _________________________

and ____________________
[M ]

– ____________ measure: [M ]
 M1
• Daardie instrumente wat onmiddellik as
betaalmiddel gebruik kan word
• M1 = munte & note in omloop buite
monetêre sektor + tjek- en
transmissierekeninge (alle onmiddellik
opeisbare deposito’s van binnelandse
privaatsektor)
 M1
 Those instruments which may be used immediately
as medium of exchange
 M1 = coins & notes circulating outside monetary
sector + cheque and transmission accounts (all
demand deposits of the domestic private sector, i.e.
that can be claimed immediately)
 M2
• Breër definisie: sluit waardedraer rol in

• M2 = M1 +
KT & MT deposito’s

kwasi-geld
 M2
 Broader definition: includes store of value
role
 M2 = M1 +
ST & MT deposits

quasi-money
 M3
 Omvattende definisie van geld

 M3 = M2 + LT deposito’s
 M3
 Comprehensive definition of money

 M3 = M2 + LT deposits
Opsomming

26
Summary

27
Waar pas kredietkaarte in?

 Kredietkaarte = plastiekgeld?

 Gebruik van kredietkaart = lening en moet

terugbetaal word met geld

 Geen effek op geldvoorraad

Where do credit cards fit in?
 Credit cards = plastic money?

 Use of credit card = loan that must be repaid

with money

 No impact on money supply

Hoe die bankwese ontwikkel het
 Eerste bankiers = goudsmede
 Kwitansies uitgereik aan eienaars van
goue munte
 Vertroue toe gevestig in hierdie
kwitansies → wat toe later as
betaalmiddel gebruik is (geld) …wat toe
gesirkuleer het in die ekonomie
 Kwitansies is gerugsteun deur goud
How banking developed
 First bankers = goldsmiths
 Warehouse receipts issued to owners of
gold coins
 Trust was insƟlled in these receipts →
receipts was then later used as medium
of exchange (money)… which circulated
in economy
 Receipts were backed by gold
Hoe die bankwese ontwikkel het
(vervolg)
 Min mense het goud kom opeis (kwitansies is as
geld aanvaar)
 Goudsmede begin goud uitleen (en hef rente),
met die hoop dat almal nie hul goud deposito’s
op een slag sal opeis nie
 Kwitansies > goudsmede se goudvoorraad
 Hierdie beginsel ook in moderne bankwese
toegepas

Banke hou slegs ‘n % van deposito’s as

reserwes
How banking developed (continues)
 Few people redeemed the receipts for gold
(receipts were accepted as money)
 Goldsmiths started lending the gold (with
interest), in the hope that not all the deposits
would be requested at once.
 Receipts > gold deposits held by goldsmiths
 This principle still holds in modern banking
Banks only hold only a % of their deposits
as reserves
Die bank se reserwes
• Banke in privaatsektor moet deel van
deposito’s as reserwes hou (vereiste reserwes)
• Vereiste reserwes word óf by sentrale bank
(SARB in SA) óf in kluis gehou by die banke self
• Grootte van vereiste reserwes bepaal deur
kontantreserwevereiste (r)
• Dit word gehou ingeval baie mense hul geld
skielik sou wou onttrek
The bank’s reserves
 Banks in private sector must hold part of
deposits as reserves (required reserves)
 Required reserves are held either at central
bank (SARB in SA) or in the banks’ vaults
 Size of required reserves determined by cash
reserve requirement (r)
 Reserves are held in case many depositors
suddenly withdraw their funds
Die bank se reserwes (vervolg)
• Reserwes = bank deposito’s by SARB + geld in
kluis by bank
• Vereiste reserwes = (deposito’s) x (r)
• r = kontantreserwevereiste, bv. as r = 2%, moet
banke R2 van elke R100 deposito hou as reserwe
• Soms hou banke meer vereiste reserwes as wat
vereis word
• Oorskot reserwes = (reserwes) – (vereiste
reserwes)
– Die oorskot reserwes kan dus uitgeleen word deur die
bank
The bank’s reserves (continues)
 Reserves = bank deposits at SARB + cash in vault
at bank
 Required reserves = (deposits) x (r)
 r = cash reserve requirement, e.g. if r = 2% it
means banks required to hold as reserve R2 for
every R100 deposited.
 Sometimes banks hold more required reserves
than required
 Excess reserves = (reserves) – (required reserves)
– These excess reserves can then be lent out by the banks
Vrae
• Beantwoord vrae 1 en 2 (“working with
numbers and graphs”) op bladsy 268 van u
handboek
Questions
Answer questions 1 and 2 (Working with
numbers and graphs) on page 268 of your
textbook
Antwoord – Vraag 1
Answer – Question 1
Antwoord – Vraag 2
Answer – Question 2
Die Finansiële Stelsel
• Direkte finansies
– kopers en verkopers van krediet/effekte handel
direk met mekaar, sonder ‘n bemiddelaar
• Indirekte finansies
– Banke = bemiddelaars tussen agente wat ’n tekort
aan geld het en agente met ’n oorskot geld
The Financial System
 Direct finance
– Buyers and sellers of credit/bonds deal directly
with each other, without an intermediary
 Indirect finance
– Banks = intermediary between agents with a
shortage of money and agents with a surplus of
money
Ongunstige keuse (“Adverse selection”)
• Gebeur voor die lening gemaak is (weens
asimmetriese inligting tussen leners en uitleners)
• Minder kredietwaardige mense is meer geneig om
aansoek te doen vir lenings.
• ‘n Voorbeeld:
– Jason het ‘n surplus van geld (R10 000). Olivia en Steven
benodig albei R10 000. Olivia benodig geld vir haar
onderneming. Steven “benodig” geld om by Sun City te
gaan dobbel. Steven sal slegs die lening terugbetaal
indien hy baie geld wen by Sun City. Steven is meer
geneig om vir Jason te vra vir ‘n lening as wat Olivia is,
maar Jason weet nie dat Steven ‘n hoë-risiko lener is nie.
• Banke, as finansiële bemiddelaars, verminder die
ongunstige keuse probleem.
– Ondersoek kredietrekord ens. om te onderskei tussen hoë-
risiko leners en lae risiko leners.
Adverse selection
 Occurs before the loan is made (as a result of
asymmetric information between borrowers and
lenders)
 Less creditworthy people are more likely to self-
select for loans
 An example:
– Jason has a surplus of money, R10 000. Olivia and Steven both want
R10 000. Olivia needs money for her business. Steven wants money to
gamble at Sun City. Steven will only repay the loan if he wins big at Sun
City. Steven is more likely to ask Jason for the loan. But Jason does not
know that Steven is a high risk loan.
 Banks, as financial intermediaries, reduce the
adverse selection problem.
– Run credit checks etc. to separate high risk borrowers from low-risk
borrowers
Morele risiko (“Moral Hazard”)
• Gebeur na die lening ontvang is (weens asimmetriese
inligting tussen leners en uitleners)
• Na die lening ontvang is, mag die lener besluit om op
so ‘n manier op te tree dat hy die uitlener benadeel.
• ‘n Voorbeeld:
– Tracey leen R5000 aan Michael omdat hy gesê het dat hy
dit nodig het vir sy studies. Nadat Tracey vir Michael die
lening gee, besluit Michael om die geld eerder te bestee
op ‘n vakansie langs die Weskus.
• Banke, as finansiële bemiddelaars, los die morele risiko
probleem op deur te spesifiseer dat ‘n lening slegs
gebruik kan word vir ‘n spesifieke doel, bv.
Studentelening, en deur te vra vir bewys van
registrasies/betaling aan ‘n universiteit.
Moral Hazard
 Occurs after the loan is given (also a result of
asymmetric information between borrowers and
lenders)
 Once a loan is given, the borrower may act in a way
that is harmful to the lender.
 An example:
– Tracey lends Michael R5000 because he said he needed it
to pay for his studies. Once Michael has the loan, he
decides to spend it on a holiday in the West Coast instead.
 Banks, as financial intermediaries, can solve the
moral hazard problem by specifying that a loan only
be used for a specific purpose, e.g. student loan, and
by requiring proof of registration/payment to the
university.
Dink hieroor
• Indien finansiële bemiddelaars nie bestaan het
nie, hoe sou dinge anders gewerk het in die
lewe?
• Sou daar ‘n toename of afname in lenings
wees in die afwesigheid van finansiële
bemiddelaars?
Think about this …
 If financial intermediaries did not exist, how
would life be different?
 Would there be an increase or decrease in
loans in the absence of financial
intermediaries?
Vraag
Beantwoord vraag 5 (“Questions and problems”)
op bladsy 268 in u handboek.
Question
Answer question 5 (Questions and problems) on
page 268 of your textbook.
Antwoord – Vraag 5
Answer – Question 5
‘n Bank se balansstaat
• Bank se bates: Lenings toegestaan (wat in die
toekoms aan die bank terugbetaal moet word – met
rente!)
• Bank se laste: Deposito’s aanvaar (wat terugbetaal
moet word aan die deposito-eienaars op versoek)
A bank’s balance sheet
 Bank’s assets: Loans granted (Which must be paid
back to the bank in the future, with interest!)
 Bank’s liabilities: Deposits accepted (which must be
paid back to depositors on request)
‘n Bank se besigheid
• Banke verander laste tot bates
• Hoe doen hulle dit?
A bank’s business
 Banks turn liabilities into assets
 How do they do this?
Geldskeppingsproses
• Handelsbanke word nie toegelaat om hul eie
geld te druk nie, maar kan nietemin geld
“skep”(hier speel reserwe vereistes ‘n rol)
• Die geldskeppingsproses hou aan totdat die
geldvoorraad verhoog het met ‘n maksimum
van: 1/r x ∆R waar
– r= kontantreserwevereiste
– ∆R = die oorspronklike deposito
• Dus is die maksimum ∆ M = 1/r x ∆R

60
Geldskeppingsproses
• Wie skep wat tydens die geldskeppingsproses?
• Belangrik: Onderskeid tussen geld geskep
deur die banksektor en geldvoorraad
toename.

61
Oefening
• Gestel r=5% en die SARB druk R500 se nuwe note
en skenk dit aan jou. Jy deponeer dit by Bank A.
Wat is die maksimum verandering in die
geldvoorraad?
maksimum ∆M =
=
=
=

• .

62
Oefening (Vervolg)
• Indien u die R500 van u oupa ontvang het wat
in Nieu-Zeeland bly, met hoeveel sou die
geldvoorraad toegeneem het?

63
Oefening (Vervolg)
• Wat daarvan as u die R500 in u spaarvarkie gehou
het en nou uithaal om by Bank A te deponeer?

64
Money creation process
• Commercial banks are not allowed to print their
own money but can nevertheless “create” money
(here the required reserves play a role).
• The money creation process continues until the
money supply has increased to a maximum of 1/r
x ∆R where
– r= required reserve ratio (cash reserve requirement)
– ∆R = the original deposit
• Thus the maximum ∆ M = 1/r x ∆R
65
Money creation process
• Who creates what during the money creation
process?
• Important: The distinction between money
created by the banking sector and money
supply increases.

66
Exercise
• Assume r=5% and SARB prints R500’s new notes and
donates it to you. You deposit this at Bank A. What is
the maximum change in the money supply?
maximum ∆M =
=
=
=

67
Exercise (Continued)
• If your received the R500 from your grandfather
who lives in New Zealand, with how much would
the money supply have increased?

68
Exercise (Continued)
• What if you had the R500 in your piggy bank and
now take it out to deposit at Bank A?

69
Volgende hoofstuk …
Die Suid-Afrikaanse Reserwebank
Next chapter…
The South African Reserve Bank