The Impact Of Internet Finance On Monetary Policy's Effect In China

First of all,this paper analyzes the necessity and urgency of studying the influence of Internet finance on monetary policy's effect.In the era of cloud computing,large data,mobile Internet,search engine and social network,Internet finance has formed a new type of financial industry with Internet and financial integration.It inherits the advantages of network technology,convenient and low cost,and can meet the long tail Market demand,expanding the depth and breadth of financial services.At present,Internet finance has become an indispensable part of the current financial system.Internet products set off a change in the choice of social public finance,and impact the traditional finance,the central bank's monetary policy is also facing new challenges.On the basis of the discussion of Internet finance,this paper defines the concept of Internet finance,and clarifies that the object of this paper is the narrow Internet finance.It found that China's Internet finance has the characteristics of disintermediation,inclusive finance,information efficiency and large security risks.With the continuous growth of Internet finance,Internet finance has made a breakthrough in the field of payment,financing and financial services and other aspects.Then,from the theoretical and empirical aspects,this paper analyzes the possible impact of Internet finance on the effectiveness of monetary policy.The analysis shows that the development of Internet finance has led to the change of the demand structure of money,weaken the stability of money demand;It also generated obvious substitution effect on the cash in circulation,increased the cash flow rate and the fluctuation of the circulation rate of the narrow money,reduced the volatility of the broad currency;Internet finance reduced the volatility of the currency controllability,increased the volatility of the narrow money multiplier,and expanded the broad money multiplier;Internet finance also challenges the monopoly of the central bank's money,then changed the effectiveness of the credit transmission mechanism;Both through the impact of money supply and demand to monetary policy interest rate transmission mechanism to bring negative impact,but also through the interest rate market promotion have a positive impact in the interest rate transmission mechanism;The market has createdmany new financial products,which improved the transmission efficiency of monetary policy,strengthened the feedback effect of monetary policy,and improved the efficiency of monetary policy.Finally,this paper summarized the conclusion,put forward the suggestions about the impact of Internet finance on the effectiveness of monetary policy,and discussed the shortcomings of this paper.