CAS EC 102 Lecture Notes - Lecture 26: Peabody Energy, Money Market Fund, Creative Destruction

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Jay Zagorsky

Document Summary

Companies don"t wanna use coal anymore creaive destrucion, rapid shrink in use of coal. Spending is based on the amount of money individuals and businesses have. Liquidity : most liquid, currency, demand deposits (checking accounts), travelers checks, moderately liquid, savings deposits, money market funds, small ime deposits, less liquid a. Large denominaional ime deposits, reverse purchase agreements, eurodollars: least liquid, even broader all 3 plus bonds issued by the largest banks in england. ^ind by looking at world bank, cia world factbook. When prices rise, we get higher levels of prices for a single product. Problems in measuring money: lots of cash is held outside us, more people have switched from cash to banks. Cash is sill here, checks are disappearing: about 50% cash transacions now, cash costs money to process it, but cash is anonymous. Costs of using diferent payments are a tax on spending. Ie credit card purchases = 3% charge on stores = inlaion for customer.