E-money Study On The Impact Of Monetary Policy

The creation of electronic currency is the third revolutionary in currency history following precious metal currency and paper currency, and is the necessary result of the development of information technology and network economy. As the latest form of currency, it is the trend that electronic currency is gradually taking the plate of traditional currency due to convenient, fast and accurate, therefore, the definition and connotation of currency has significant changes, and has presented sharp challenge to such traditional central bank systems as currency issuing right, validity of currency policy and supervising system. So it is significant subject for theoretical industry and currency administration to master the movement regulation of electronic currency and improve financial laws and supervision.In accordance with the development of situation of electronic currency in China, the thesis has analyzed the influence of electronic currency to currency policies from qualitative and quantitative analysis angles by applying the method of combining theoretical analysis and practical research. The positive analysis mainly applies relative data during 1996 to 2005 through quantitative analysis and has set up the cointegration model of electronic currency and basic currency, currency multiplier, currency supplying amount and price, error correction model basing on vector autoregressive model, Granger causality test, pulse response function and variance decomposition inspection, and has discussed the short and long term influence and contribution of electronic currency to currency supplying and currency policy effect. Then, the thesis has presented that it is suitable to apply public market business as the operation tool for currency in China under the situation of electronic currency circulation, and select the interest rate as the medium target.Conclusion: though electronic currency has a short period of development in China, in certain degree, it has influenced the currency supplying, currency policy tools, medium target and currency policy effect.