Research On The Influence Of Internet Finance On Money Multiplier

The special currency circulation channels of Internet finance not only bring shocks to the currency creation system;but also bring great changes to the economic and social payment habits,affecting the public's money demand,and finally make money multipliers through different machines.What kind of changes does the Internet finance bring to the money creation system and money demand?What mechanism does this change affect the money multiplier?What kind of form will the money multiplier under Internet finance be?Based on these questions,this article from the mainstream Internet financial model Starting from the currency trajectory,this paper studies the process of Internet financial currency creation and analyzes the changes it brings to the currency creation system.Based on the classical money demand theory model,it considers the impact of Internet financial factors on the demand of money and establishes a new model of money demand.The extended money multiplier model is derived based on the mechanism of Internet finance's effect on the currency multiplier.The theoretical analysis of this paper shows that Internet finance affects the money multiplier through two mechanisms.First,the non-depository mechanism of commercial banks.The premise of its function is that some sources of funds of commercial banks are not deposited after Internet finance,and the essence is traditional currency creation.The change of the system makes the commercial bank have some"central bank" functions and the money multipliers are characterized by" additional style";the second is the cash leakage mechanism,which acts to affect the cash demand of the public and thus change the cash leakage and assets.Structure and ultimately acting on the currency multiplier.The combination of the two mechanisms of action ultimately leads to the "additive" currency multiplier under the "central bank" function of commercial banks.Through empirical tests,it is found that the ratio of Yuebao and electronic payment to the current deposits is expanded to a certain extent by m1 and m2;Yu'ebao can influence the currency multiplier through the cash preparation channel,but the impact on m1 and M2 is different;Electronic payment acts on the currency multiplier through the cash leakage channel and the fixed-term deposit channel,and the effect on m1 and m2 is different.The conclusion is that although Internet finance,which relies on the commercial banking system,complicates the currency creation system,monetary authorities can weaken this influence by controlling the relevant variables between commercial banks and Internet finance.