The Impact Of Electronic Money On China's Currency Excess

There is a special relationship among money,price and output in China.The growth of money supply M₂ is much higher than that of GDP.China's M₂ increased by about 11.46times from 2000 to 2017,while GDP grew by only about 7.25 times.Many researchers generally believe that China has a problem of excess currency,which seriously affects the development of China's economy,the implementation of monetary policy and price fluctuations.With the development of Internet technology and mobile payment,the traditional mode of paper money transaction and circulation has been greatly impacted.Money excess is a kind of currency phenomenon in essence,especially under the condition of electronic money.With the continuous evolution of currency mode,The traditional paper money issuing mode is gradually replaced by the electronic money mode,but the supply and demand of money and the circulation of money under the electronic money mode are very different from the traditional money issuing mode.This paper focuses on the impact of e-money on money overshoot,first reviews the relevant literature at home and abroad,and on the basis of summing up and summarizing the relevant basic theories,explores and summarizes the theoretical model mechanism of e-money on money overshoot.Then on the basis of combing the methods of measuring China's currency overrun and considering the advantages and disadvantages,this paper chooses the method of currency stagnation to measure the degree of China's currency overrun,and measures and analyzes the degree of China's currency overrun.Secondly,it analyzes the development of China's electronic money,and selects the phase.The index measures the degree of electronic monetization in China.Then,through the selection of indicators,the construction of models and relevant tests,the paper analyzes the impact of e-money on money supply and money demand by empirical measurement respectively,and then puts money demand and supply into a unified analytical framework,and makes a thorough analysis of the impact of e-money on money overshoot.Close the conclusion.Finally,according to the results of the analysis,the corresponding policy recommendations are put forward from five aspects,which provide a certain degree of solution to the impact of e-money on money overshoot.The conclusion is as follows:the increase of the degree of electronic monetization will reduce the basic money and increase the money multiplier,the result of the joint effect of the two is to increase the money supply;in addition,the increase of the degree of electronic monetization reduces the transaction and preventive money demand,and increases the speculative money demand,both of which are common.This has led to a reduction in demand for money.The increase of the degree of e-money reduces the demand for money and increases the interaction between money supply and money supply,which eventually leads to the increase of money overshoot...