An Empirical Study On The Impact Of Electronic Money On Inflation In China

In the rapid development of network technology,the financial industry is also constantly introducing their own innovative products,Among them,electronic money has been welcomed by the public relying on Internet technology,Electronic money is another kind of virtual currency after bank notes and banknotes.Its existence and application depend on certain physical carrier.electronic payment systems have many advantages,such as speed,cheap transaction costs,free from time and place constraints,these make the electronic money welcomed,but had a very profound impact on the macroeconomic Among them,Inflation is important.So this article will analyze the electronic money on our well-known inflation,what kind of impact.In theory,the influence of electronic money on the currency deposit ratio,the reserve deposit ratio and other indicators,thus affecting the money multiplier,and the base currency is generally controlled by the central bank,so the electronic money to a certain extent,expanded the money supply,While electronic money to reduce the autonomy of the currency demand,which is to reduce the demand for money,the use of supply and demand principles,the development of electronic money to a certain extent,amplified the level of inflation;At the same time,electronic money will speed up the flow rate changes,but according to the analysis of the status of electronic money,we can see that although the electronic payment system to speed up the flow of money,but far less than the electronic currency makes the liquidity of the currency into a weak currency,The role of the two makes the acceleration effect weakened.Based on the above theoretical analysis,we selected the data from 2001 to 2016,empirical analysis of the impact of electronic money on inflation.Select the CPI as an indicator of inflation,select chivalrous money multiplier and generalized currency circulation speed as an independent variable,The results of the empirical analysis show the currency multiplier and the currency circulation rate have positive change on the price level,of course,because the electronic currency in China is not very mature,so these coefficients are still relatively small,it also shows that the development of electronic money have a certain impact on inflation,we have to be taken seriously.According to the theory,present situation and empirical analysis,it is concluded that even if the development of electronic money is not very mature,but the electronic money will still have an impact on inflation,and put forward the corresponding policy recommendations,First,improve the electronic currency statistical methods;Second,in the development of the relevant monetary policy,the impact of electronic money in which to take into account;Third,the electronic currency related to the legislation to improve and strengthen the use of electronic money regulation;Finally,to strengthen international exchanges and cooperation to reduce the impact of hot money for a country,but also to prevent some criminals to use electronic money to achieve money laundering and other illegal trading activities.