Research On The Influence Of The Electronic Money On The Money Supply In China

With the development of the computer information technology and network economic, electronic money as the latest currency form have become more and more widely in people's lives presenting a variety of patterns (such as electronic wallets, mobile wallets). The definition and connotation of the currency has changed a lot , due to the high efficiency, fast and low cost of electronic money and electronic money have a significant impact to the entire financial system .Therefore ,it is significant for making reasonable monetary policy and improving the financial laws and regulations to master the content of electronic money and its operation rules.Based on the results of previous studies, at first we define electronic currency and its classification and introduced the concept of money supply and the level of division. Second, combining the development of electronic money in our current situation, the thesis had analyzed the influence of electronic money to money supply from qualitative and then from quantitative aspects. During empirical analysis, we adapt the quarter data and build the long-term cointegration model of electronic currency and money supply amount , basic currency, money multiplier, money velocity and the error correction model basing on vector autoregressive model to analyze the short and long term influence and contribution of electronic currency to money supply amount ,basic currency, money multiplier, money velocity .Finally, we sum up the fluctuation of money supply amount , basic currency money multiplier, money velocity led by electronic currency and discuss the impact of fluctuation to monetary policy tool ,medium targets, monetary policy effect. Furthermore , some suggestions are put forward for our country's central bank.