The Impact Of Internet Finance On The Effective Of Intermediary Targets Of China's Monetary Policy

With the penetration and innovation of Internet technology in the financial field,the Internet finance industry has entered a period of rapid development since 2013.The continuous innovation of Internet finance has broadened the demand boundary of society for finance.Will the rapid development of Internet finance impact monetary policy?Will it have a certain impact on the effectiveness of the monetary policy intermediary target?This paper studies the impact of Internet finance on the effectiveness of monetary policy intermediary targets through theoretical and empirical methods.From the perspectives of quantitative monetary policy and price monetary policy,this paper selects the intermediate targets that can represent two monetary policies:Money supply and interest rates.On this basis,the vector autoregressive(VAR)model is selected for empirical analysis,and the relevant variables such as the transaction scale of Internet financial index,the weighted average interest rate of interbank seven-day interbank borrowing,and the money supply are introduced.The monthly from January 2010 to January 2019 is selected.The data is empirically modeled to study the extent of the impact of Internet finance on the long-term and short-term effectiveness of monetary policy intermediary targets.The research results show that Internet finance intensifies the volatility of narrow money supply in the short term,and long-term credit expansion function has a long-term expgansion effect on broad money supply,thus reducing the effectiveness of money supply as the intermediate target of quantitative monetary policy.At the same time,it has a negative impact on the stability of interest rate transmission channels in the short term,but it is conducive to the marketization of interest rates in the long run.Therefore,it has a positive impact on the interest rate transmission channel,making interest rate effective as an intermediate target of price-based monetary policy.The innovation lies in the selection of Internet financial agency indicators,instead of replacing the size of the Internet financial industry with the size of the local format such as third-party payment and the data with too small a sample size,resulting in insufficient sample size,but selecting the Internet financial index transaction.Scale is a comprehensive indicator that comprehensively reflects the Internet financial format.The index is compiled from the massive data analysis of the Internet financial industry.Its historical transaction scale can objectively reflect the overall industry scale of China's Internet finance.Moreover,the time span of the sample data contains the blowout period of the entire Internet financial industry,which is more scientific and complete to describe the development of the Internet.