An Empirical Study Of The Impact Of Electronic Money On Monetary Policy Transmission Mechanism

In October 18,1995, the first security network bank (SFNB) as the world’s first online bank to open to the public; in March 6,1998, the Bank of China completed the first "online banking", in June 1999, China Alibaba and other companies engaged in network transactions has been established in November 11,2013, the day of cat treasure trading volume reached 35000000000 China in the Internet banking and electronic money on the progress has made great success, resulting in the monetary policy of China’s monetary base monetary multiplier and other factors, but due to the defects of China’s economic system, which may lead to the failure of monetary policy in China. Electronic money is able to make a surprising development in a very short period of time because of its financial innovation means and tools to circumvent some of the shortcomings of the traditional financial system. In depth analysis of the impact of electronic money on China’s monetary policy, the implementation of monetary policy and economic development in China has important theoretical and practical significance.The main conclusions of this paper are:first, through the study of domestic and foreign electronic money to sort out the relevant literature, based on the theoretical analysis, the concept of electronic money to define and expand. Second, summed up the characteristics of electronic money and virtual currency and other currencies, the difference and contact. Third, according to the relevant data on the extent of the influence of electronic currency on the basis of the currency of the theoretical analysis, and operation and the risk of electronic currency and the monetary base substitution were theoretical research:China’s electronic money on monetary base produced a substitution effect, and the effects of monetary multiplier, which may affect the implementation of China’s monetary policy, even may cause the failure of monetary policy. Fourth, in the part of empirical analysis. In this paper, the use of cointegration theory of electronic currency substitution level was calculated, through cointegration empirical analysis research model that is positively related to national GDP and the base currency, electronic currency and the monetary base is negative correlation. In the current stage of monetary base and money multiplier effect coefficient absolute value although modest, but this effect with the change of the scale of the development of electronic money gradually enhanced; by calculating the impact of electronic money, the establishment of right of the electronic currency risk prevention measures and improve the central bank to implement monetary policy approach can effectively guide the development of electronic money, and give full play to their role in promoting economic development. Fifth, combined with the conclusion of the empirical research, it puts forward the countermeasures to prevent and control the risk of electronic currency.