Research On The Impact Of The Development Of Internet Finance On The Effectiveness Of Monetary Policy In China

In recent years,with the continuous upgrading of Internet software and hardware technology,as well as its gradual close integration with traditional financial business,a new financial model of "Internet finance"has begun to emerge in China.Faced with the economic status quo of interest rate liberalization and the prosperous development of Internet economy,the rapid development of Internet finance provides an effective way for smes to solve financing problems.The rapid development of Internet finance not only promotes the gradual realization of marketiza-tion of interest rate in China,but also forces commercial Banks to carry out reform,thus further promoting the development of China’s financial market to a deeper level.However,according to the development experience of other countries in the world,in the development process of Internet finance,the effectiveness of a country’s monetary policy and the stability of its financial environment are extremely vulnerable to the impact of Internet finance.Internet finance has a series of effects on the effectiveness of monetary policy by influencing the supply and demand of money and the transmission mechanism of monetary policy,thereby restricting its role in promoting the real economy and effectively carrying out macroeconomic regulation and control.According to the current development situation,the current regulation and regulation policies of Internet finance are not well adapted to its development and urgently need to be improved,which has attracted the attention of monetary authorities of various countries.The form,function and circulation mode of traditional money are all affected by Internet finance,which further affects the money supply,demand and transmission mechanism,thus affecting the effectiveness of monetary policy.With the in-depth development of China’s Internet finance,has the effectiveness of China’s monetary policy been affected?How does Internet finance affect the effectiveness of monetary policy?How should China’s monetary authorities respond?The purpose of this paper is to seek the answers to these questions through theoretical analysis and empirical test.The research object of this paper is China’s Internet finance and monetary policy.By studying the current development mode of China’s Internet finance,the impact on the supply and demand of money and its transmission mechanism,and some other aspects of the problem,the answer to the research question will be explored.Firstly,the paper analyzes the development mode and current situation of China’s Internet finance,and sorts out the factors that influence the monetary policy.Secondly,through theoretical analysis,the paper demonstrates the ways in which the development of Internet finance affects the supply and demand of money and the transmission mechanism.Thirdly,through empirical research,a vector autoregressive model is established to carry out empirical analysis on variables,verifying the impact of Internet finance on various experimental variables and proving the reliability of the research conclusion.Finally,according to the results of theoretical analysis and empirical test,the research conclusions are drawn.Based on this,this paper puts forward some suggestions on the future development of Internet finance and the policies that monetary authorities should adopt.According to the research ideas,the full text is arranged as follows:in the introduction of the first chapter,the research background and purpose of this paper are elaborated,the research methods of this paper are introduced,and the main innovation points and deficiencies are explained.The second chapter is a review of domestic and foreign literatures.Through the analysis of relevant domestic and foreign literatures,it defines the related concepts and characteristics of Internet finance,and sorts out the relevant theoretical and empirical research on the impact of Internet finance on the effectiveness of monetary policy.The third chapter is the theoretical analysis part.Through the discussion of the basic theories of money supply,demand and monetary policy transmission mechanism,this paper analyzes the possible influence of Internet finance on various factors in the transmission of monetary policy mechanism.The fourth chapter verifies the research ideas of theoretical analysis in the previous chapter through empirical test to ensure the accuracy and reliability of the research conclusions.Finally,the fifth chapter summarizes the theoretical and empirical research,draws the conclusion of this paper,and puts forward the corresponding policy recommendations.