Research On The Influence Of Electronic Money On Money Multiplier

With the development of computer technology and Internet technology,the financial industry has also begun financial innovation under the pressure of competition and profit.Electronic money has emerged as a new type of financial innovation.The emergence of new payment methods such as electronic payment and two-dimensional code payment has promoted the popularization and use of electronic money.After solving people’s doubts about the security and convenience of banknotes,electronic money began to replace cash as the main currency used in daily life.At the same time,electronic money also has a greater impact on monetary policy and currency multipliers.Therefore,this article focuses on the impact of electronic money on the currency multiplier and its impact mechanism.On the basis of summarizing domestic and foreign related research on this issue,this article will first explore the influence of electronic money on the currency multiplier by theoretical analysis,and then verify the conclusion of the theoretical analysis and quantify the effect of electronic money on the currency multiplier through empirical analysis.Affects the size.In terms of theoretical research,this article first explores the influencing factors in the traditional currency multiplier formula,and then theoretically analyzes what kind of influence e-money has on these factors,so as to link e-money to the currency multiplier,and then from the theory This article analyzes the qualitative impact of electronic money on narrow money multipliers and broad money.Then,based on the data obtained from the People’s Bank of China,the China Clearing Association and the Statistical Yearbook,analyze and sort the data,establish a cointegration relationship and error correction model to quantitatively analyze the effects of electronic money on the narrow money multiplier and the broad money multiplier.Influence,and then analyze the data and results to draw relevant conclusions.At the end of the article,according to China’s national conditions and the development of electronic money,combined with relevant data to provide government monetary authorities with some policy recommendations.Through research and analysis,the paper draws the following conclusions: Electronic money constitutes a substitute for cash,and makes the different monetary levels blurred,and has an impact on the implementation of monetary policy.Due to the substitution of electronic money for cash,it has an impact on the cash leakage rate and excess reserve ratio.It makes the cash leakage rate and the excess reserve ratio smaller,thereby amplifying the currency multiplier.The impact on the proportion of time deposits is not very clear in theory.However,it can be expected that the use and promotion of electronic money generally makes the narrow money multiplier and the broad money multiplier larger.This is also proved by the empirical results.In addition,empirical analysis shows that the influence of electronic money on different monetary levels is different.The influence of electronic money on the broad money multiplier is greater than its influence on the narrow money multiplier.In addition,the popularity and development of electronic money has also led to the endogenous strength of the money supply,which has brought new challenges and difficulties to the formulation and implementation of monetary policy.