Empirical Research On The Effect Of Internet Finance Development On Monetary Policy Effectiveness

In the context of the new normal and the new age of the Chinese economy,the Internet finance has been built in the context of the modern financial system,which is more consistent with the policies of the state to be able to produce,change the structure,to promote reform,to promote the reasonable allocation of resources,to reduce the financing costs,and to have a more prosperous period of development.Since 2013,various new modes of Internet finance have emerged and expanded rapidly.However,Internet finance,as a new business model,has not been fully developed,and its regulatory mechanism is not yet sound.Its rapid expansion has exerted a huge impact on traditional financial institutions and central Banks’ macro-control and monetary policy effects.However,the specific impact mechanism and influence degree need to be further studied.At the same time,emerging industries such as Internet finance are not covered by traditional monetary policy tools.This paper starts with the embodiment of the effectiveness of monetary policy,and analyzes the effect of monetary policy on the stability of transmission channels and the control points of policy objectives.Then,the influence of Internet finance on bank credit transmission channels and interest rate transmission channels is analyzed from the perspective of conduction channel stability.Then,from the perspective of policy objectives,the influence of Internet finance on the intermediary goals and ultimate goals of monetary policy is analyzed,and the relevant perspectives on the effectiveness of monetary policy are integrated in the theoretical perspective,and the ultimate goal is added to the research perspective,and the internal mechanism of Internet finance’s influence on the effectiveness of monetary policy is analyzed in depth.In order to test the theory analysis,this paper uses a vector error correction(VEC)model to measure the size of the Internet finance,the balance of the bank of the financial institutions,the seven days of the interbank lending rate,the money supply,the total output of the bank,the total output of the amount of the last ten years from 2007 to 2017,to model the extent and the means of the validity of the monetary policy of the Internet finance.In this study,the development of the Internet finance has caused the fluctuations in the supply of money,the weakening of the bank’s credit control,and the instability of the distribution of the credit,but it has a short-term impact on the stability of the channel of interest rates,but the long-term effects are smaller,and the impact of the monetary policy on the economic growth is not very large.This paper put forward including rich intermediary index system of monetary policy to prevent intermediary goal of the single and influence monetary policy effect;Incorporate Internet financial reserves regulation system,enhance the reserve system of credit control,and guarantee the validity of the credit transmission channel;Transformation framework,the monetary policy conduction effect better interest rates,and pay more attention to price type tool use;Support the development of the Internet financial as well as to strengthen supervision,to guard against Internet financial risk impact monetary policy environment,to ensure the effectiveness of monetary policy recommendations.