A Study On The Influence Of China 's Electronic Money Development On Money Supply

Since the 1980 s, with the development of information technology revolution, a new form of currency had been created out under the conditions of the rapid development of microelectronics technology and Internet technology, which combined with financial innovation. It was Electronic Money. With the advantages of high efficiency, low cost and high speed of spread, Electronic Money gradually became the second popular payment following the paper cash in our daily life, such mobile payment and electronic payment. The production and development of Electronic Money brings great changes to Money Supply Theory, and substantially affect the operation and development of financial system. So there are realistic meanings to research how the development of E-Money affects money supply, which can help the monetary authorities develops reasonable monetary policy to improve the financial laws and regulations, and guard against financial risks.This paper starts from the research status of the Electronic Money. The paper defines basic content and classification of Electronic Money, and introduces the history of the development of Electronic Money. Based on the Money Supply Theory as the foundation, and combined with the development, the paper qualitatively discusses the influence on the Money Supply Mechanism. The paper clears the specific influence by analyzing how Electronic Money influences the divide of Money Supply Level, Base Currency and Money Multiplier. The paper uses SPSS19.0 to process the quarterly data from 2000 to 2014, then quantitatively analyzes the influence to the above three aspects. Finally summarize the influence on Money Supply by Electronic Money, and discusses the impact to the effectiveness of Monetary Policy. Furthermore, some suggestions are provided for the Central Bank to develop reasonable monetary policy.