Research On The Impact Of Mobile Payment On Money Supply In China

With the development of Internet finance and the popularization of mobile terminals,mobile payment has become an important payment method for People's Daily life,such as consumption,shopping,transportation and public payment.Compared with carrying cash,mobile payment has many advantages.When you spend money outside,you can make all kinds of payment with a mobile phone,which can save time of change and other inconvenience.The wealth management platform on mobile payment APP can make people's small change earn considerable profits while waiting for payment.Mobile payment has not only changed People's Daily lifestyle and consumption habits,but also impacted various business models.The sharing economy and smart cities are too numerous to mention.It can be said that mobile payment has increasingly become an important part of modern life.However,with the increasing number of mobile payment users and the increasing amount of money,it is inevitable that the money market in China,especially the money supply,will have a certain impact.The central bank's monetary report in 2019 said that the amount of mobile payment in the first half of 2019 is 166.08 trillion yuan,up 24.22 percent year-on-year.In view of this,the research content of this paper mainly focuses on the impact of mobile payment on China's money supply and whether China's central bank needs to pay attention to and supervise it.In order to answer this question,this paper refers to relevant theories and previous literature,selects the inseparable money multiplier and money supply,conducts theoretical and empirical research through two paths,and finally puts forward corresponding policy Suggestions based on the research results of this paper.The research process of this paper is as follows: firstly,the definition and scope of mobile payment are expounded and defined,and its development characteristics and trend are pointed out;Then,after read the relevant theories of money supply,the next chapter makes a theoretical analysis on the influence of mobile payment on money supply.After certain theoretical analysis and conjecture,the empirical part adopts VAR model to verify two paths and one framework.The last part puts forward the corresponding policy Suggestions for the system environment and development potential of mobile payment.Through empirical research,it is found that mobile payment has a positive impact on narrow and broad money multiplier in the short term,a positive impact on narrow money velocity and a negative impact on broad money velocity.Finally,consistent with theoretical analysis,mobile payment increases the money supply through the above two paths.Therefore,this paper concludes that mobile payment will expand the money multiplier,improve the velocity of narrow money circulation,reduce the velocity of broad money circulation,and ultimately improve the narrow and broad money supply.Finally,this paper gives some Suggestions on the research results,including clarifying statistical indicators to strengthen monitoring,strengthening legislation,regulating the development of third-party mobile payment companies and promoting the development model of mobile payment to be more market-oriented and gradually globalized.