The Impact Of Third-party Payment On China's Currency Supply And Demand

In recent years,with the support of electronic technology,third-party payment has presented an unstoppable development trend.Undoubtedly,third-party payment not only provides favorable conditions for economic activities,but also has an impact on the traditional currency operation system.At the same time,in recent years our country existed phenomenon of excess money supply,money supply growth exceeded the economic growth.The rapid expansion of asset markets and the continuous fluctuation of prices indicate that a considerable part of the excess money supply may flow to asset markets,which poses new challenges to the monetary policy of the central bank focusing on stability.As an effective supplement to the electronic payment system,how does the third-party payment system affect the currency supply and demand? Is it the cause of excess money supply or excess money supply? Therefore,it is necessary for us to discuss the impact of third-party payment on the monetary system and further put forward feasible policy Suggestions.First of all,based on the systematic review of domestic and foreign research literature on third-party payment,this paper defines the concept of third-party payment,summarizes the operation mode and development characteristics of third-party payment,as well as the development status and role of third-party payment since its birth.In addition,the concept of excess money supply phenomenon was defined,and it was believed that financial innovation factors such as third-party payment should be included in the influencing factors of excess money supply to expand the research scope of excess money supply phenomenon.Secondly,the normative analysis method is used to study the impact of the third party payment on currency supply and demand.Considering the substitution effect,the third party payment has a strong substitution for cash,followed by the demand deposit,expanding the broad money multiplier.Considering the conversion effect,the third-party payment realizes the conversion between different currency levels at a lower cost,which speeds up the circulation of narrow money and reduces the demand for narrow money.Under the framework of IS-LM model,analyze the transmission mechanism of excess money supply caused by the influence of third-party payment on money supply and demand.Thirdly,empirical research is used to verify that the third-party payment has amplifying effect on the broad money multiplier and accelerating effect on the narrow money circulation speed.Therefore,the third-party payment generates excess money supply through the above money transmission channels.In addition,on this basis,an empirical model of third-party payment and inflation is established to verify that the development of third-party payment does not reflect the surplus money in the physical price.Therefore,third-party payment can be used as the influencing factor to explain the excess money supply.Finally,based on the above analysis results,this paper proposes feasible policy suggestions on the possible impact of third-party payment on excess money supply and its impact on the monetary system and monetary policy.