The Research On The Implications Of Electronic Money For The Effectiveness Of Monetary Policy

The creation of electronic currency (e-money) is considered as the third revolutionary in currency history following the emergency of precious metal currency and paper currency. The emergency of e-money is a must of the development of information technology and network economy. As the latest form of currency, e-money is now taking place of the traditional currency step by step due to its convenient, quickness and accurate, its development is becoming a trend, making significant changes of the definition and connotation of currency. Therefore, there is theoretical and practical significance in studying the impact of e-money on the effectiveness of monetary policy. This paper is divided into five chapters.Chapter One is an introduction, which includes the researching background and significance of the essay, research survey on the influence of electronic currency home and abroad, basic structure of the essay, research approaches, innovative point and limitation of the essay.Chapter Two focuses on the development of currency forms and the creation of electronic currency. It explains the creation and development of currency from a historical and logical point of view, four stages of currency development (that is commodity money, noble metal currency, token money and credit money ), and the creation of modern electronic currency and its background.Chapter Three concentrates on electronic currency and its development. This chapter gives a distinct definition of electronic currency and makes a profound explanation of its types, characters and functions. With the description of the status quo of the development of electronic currency home and abroad, it predicts the future of electronic currency from the aspects main suppliers of electronic currency and the game model of the demand of the seller and consumers.Chapter Four studies the impact of electronic currency on the effectiveness of monetary policy. This chapter respectively analyzes the influence of electronic currency on tools, intermediate targets and transmission mechanism of monetary policy and discusses in depth the magnifying influence of electronic currency on currency multiplier.Chapter Five analyses the development of e-money and put forward the suggested policy. After demonstrating the influence on the effectiveness of monetary policy, this chapter put forward corresponding and targeted suggestions. These suggestions are as follows: carry out the legal reserve policy of e-money by the central bank, take new intermediate targets of monetary policy into consideration, the central bank may consider the feasibility of issuing e-money, promote the application of e-money and improve the current infrastructure and legal environment, establish and improve the regulatory system of electronic money.