Research Of The Impact Of Fintech On The Effectiveness Of Monetary Policy

With the rapid development and wide application of computer technology,the footsteps of financial and technology integration are constantly accelerating,and fintech came into being.Fintech relies on modern scientific and technological achievements,promoting innovation in financial instruments,financial products and financial services.Our country’s fintech has developed rapidly,providing a vitality for the development of financial industries,but also provides new engines for high quality development of economies.The development of fintech has changed traditional trading methods,companies’ investment and financing methods,financial institutions’ service methods,and has also affected the effectiveness of monetary policy.Therefore,this thesis uses the theoretical and empirical combined methods to analyze the impact of fintech on the effectiveness of monetary policy,to better understand the changes and influencing factors of the effectiveness of monetary policy under fintech,which has important theoretical significance and practical significance for promoting the healthy development of fintech and playing fintech to the promotion of economic development.First of all,this thesis describes the core technology,development status of fintech and the related theory of monetary policy effectiveness.Second,the influence of fintech on monetary policy tools,intermediary objectives,conduction mechanisms and ultimate goals is respectively analyzed.Finally,the fintech index is constructed using the principal component analysis.Then this thesis uses the TVP-VAR model to analyze the construction of fintech index,broad money supply,interbank 7-day offered rate,total financial institutions of RMB loans,the gross domestic product,to understand the impact of fintech on the effectiveness of monetary policy under time interval and different time points.Based on theoretical analysis and empirical analysis,the following conclusions are obtained: First,fintech has weakened the capacity of central banks to use legal deposit reserve ratings and reappointment rate to regulate the economy,and improve the efficiency of open market operations.Second,fintech has reduced money supply,weakened the effectiveness of the money supply,and promoted the decline in interest rates,enhanced the effectiveness of interest rates.Third,fintech has promoted the process of interest rate marketization,improved interest rate conduction channels,and weakened the intermediary role of commercial banks in the credit conduction process,weakened the conduction effect of bank credit channels;Fourth,fintech will cause economic fluctuations in the short term,and will promote economic growth in a long time.Based on the research conclusion,this thesis proposes countermeasures from the promotion of the benign development and the formulation and effective implementation of the monetary policy in the context of fintech.