The Impact Analysis Of Electronic Money To Virtual Economy

With the development of modern technology and the rising of the banks, themonetary form was haven two major revolution: the first time was in the Middle Ages,with the bank notes instead of Mint, the world evolved into the modern system basedcredit; the second was only in the late1990s, appeared a new currency-electronicmoney, it was in an accelerated trend to replace the presence of banknotes. Sinceelectronic money generated, there are a lot of influence on the running of theeconomic system as a whole, which affects not only the monetary economic system,but also had a significant impact on macroeconomic performance systems.Development of electronic money, the money multiplier would be expanded, thus themoney supply will increase; virtual economy has diversion effect on the money supply,the increasing in the money supply will increase the demand for virtual economicsector; addition, electronic money which is fast and convenient brings a lot ofconvenience to the development of the virtual economy, it’s a new paymentinstruments to virtual economy currency exchange with facilitate, and will promote thedevelopment of the virtual economy to a certain extent. Virtual economic developmentin turn will pay the power to tool innovation, to encourage payment instrumentsinnovation, so make it to a higher level. So, there is great significance to study theimpact of electronic money on the virtual economy.In this paper, starting from the theory, fixed money supply equation and the quantityof money equation. In amendment money supply equation: the ratio of the electronicmoney account demand deposit is proportional to the money multiplier. thedevelopment of electronic money has expanding the money multiplier and increasingthe money supply. From the correction equation of new quantity money,we can knowthat the increase of the growth rate to electronic money will make the growth rate ofthe virtual economic system’ volume and price increased, this is indicated that the development of electronic money will promote the development of virtual economicsystem.On the basis of theoretical analysis, this paper established vector error correctionmodel by empirical findings based on cointegration theory: between the electronicmoney and virtual economy, in the long term there is a positive correlation. Meanwhile,according to the VEC model: with the function of the co integration role the virtualeconomy short-term fluctuations is relatively large, the long-run equilibrium error term correction （ecm|^）_1,t-1 between electronic money and virtual amount of economictransactions have a reverse effecting to the virtual economy trading volume, but thelong-term equilibrium error （ecm|^）_1,t-1 between electronic money and the money supplyamount has a positive promoting to the virtual economy trading volum. when short-term deviation from equilibrium, the system will automatically adjust,but in their jointaction the virtual economy short-term fluctuations would become more intense.