TheRegulationOfTheFinancialInstitutions’Sector文件材料.ppt

Money and Capital Markets 19 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu The Treasury InThe Financial Markets ? Learning Objectives ? To examine the many important roles played by the government’s Treasury Department. To identify how the government raises new funds and how it spends the funds raised. To understand how the activities of the Treasury Department impact the money and capital markets and the economy. To explore two key government policy tools – fiscal policy and debt management. Introduction The U.S. Treasury Department exerts a potent impact on the financial system through its fiscal policy – the taxing and spending programs of the federal government designed to promote various economic goals, and debt management policy – the refunding or refinancing of the federal government’s debt in a way that contributes to its economic goals and minimizes the debt burden. The Fiscal Policy Activities ofThe U.S. Treasury Congress dictates the amount of funds the federal government will spend each year on programs like welfare and national defense, and also determines the sources of tax revenue and tax rates. When tax revenues are not sufficient to cover expenditures, a budget deficit occurs. A budget surplus occurs when government revenues exceed expenditures. The Fiscal Policy Activities ofThe U.S. Treasury Federal Government Revenues, Expenditures, and Net Budget Surplus/Deficit Fiscal Years $ Billions Receipts Outlays Surplus or Deficit (-) Data Source: U.S. Office of Management and Budget The Fiscal Policy Activities ofThe U.S. Treasury Source: U.S. Office of Management and Budget Federal Government Revenues, Expenditures, Net Budget Surplus/Deficit The Fiscal Policy Activities ofThe U.S. Treasury Recent Tax and Expenditure Legislation The Economic Recovery Tax Act (1981) aimed to simulate savings and business investment in order to reduce inflati