The Development Of Electronic Money And Influence On Monetary Policy Of Central Bank

The money has gone through three stages in the course of developing: commodity money, paper money and electronic money. From the development course of the money, the changes of the monetary system are for improving the speed of money flow, reducing the monetary circulation costs, thus reduce the trade expenses of the goods. With the improvement of information and communication technology, it becomes an unavoidable trend that the electronic money will replace traditional currency and have a remarkable influence on monetary policy of central banks. This paper first proceeds from general definition and function of money, divide the electronic money into several different sets, distinguish the electronic money that various kinds of electronic means of payment produce essentially; Then study the industrial structure and developing of electronic money; Finally analyze the impacts of development of information and communication technology on intermediary targets of central banks, consider that whether central banks have the ability to control short-term operating target. This paper makes several conclusions. The electronic money can be divided into three sets according to its characteristic: electronic transfers, storable electronic transfers and circulating electronic money. The development of information and communication technology cause keen competition of the electronic money industry and fast enlargement of market demand, the industry will form a situation of monopolistic competition. With the improvement of information and communication technology, the marginal cost of financial intermediaries reduce gradually and people are more familiar with new means of payment and willing to accept them, those factors will cause the industry pass the "critical point"; If it exists the demand of central bank issued money for clearing balances, central banks would still have the ability to control the overnight rate of inter-bank reserve market, but it requires that central banks should change the operating mechanism of monetary policies.