A Study On Impact Of Internet Third-party Payment On Money Multiplier

In recent years,thanks to the support of the third party payment of Internet information technology and electronic business arises gradually and develops vigorously,and at the same time,the development of the third-party payment pay also changed people's habits and demand for money,has a certain impact on the currency in circulation,the effective control for the central bank monetary policy put forward a new challenge.In the third-party payment,the third-party online payment is the payment method with the largest proportion.Therefore,this paper selects the Internet third-party payment as the research object,discusses the impact of the third-party payment on the monetary multiplier from the perspective of the Internet,draws conclusions through empirical tests,and further analyzes feasible policy Suggestions.This paper combines theoretical analysis with empirical research.First of all,this paper expounds the overview of the third-party payment and the money multiplier and the relevant theoretical basis,and then analyzes the development status and existing problems of the Internet third-party payment.To explore the development of the Internet third-party payment mechanism of money multiplier effect in our country,respectively from four aspects:cash leakage rate,total,deposit rate and deposit reserve rate substitution effect on Internet third-party payment to our country to study the influence of money multiplier,and then from the perspective of the overall analysis of the development of the Internet third-party payment impact on money supply mechanism in our country.After that,a vector error correction model(VEC)was established to empirically test the impact of Internet third-party payment on China's money multiplier.This paper found that:Internet third-party payment can have an impact on the money supply,and increase the money multiplier by changing the rate of cash leakage,the total reserve ratio and the rate of time deposits.In addition,the substitution effect of electronic currency can also reduce the currency in circulation and increase the money multiplier.The empirical results show that the Internet third-party payment has a magnifying effect on both the narrow money multiplier and the broad money multiplier,and the time deposit has a smaller effect than the narrow money multiplier,but a magnifying effect on the broad money multiplier.Finally,based on the empirical test results,this paper puts forward targeted policy Suggestions from the aspects of strengthening the regulation and supervision of third-party payment,promoting the sustainable and healthy development of the third-party payment industry,improving the monetary policy macro-control system,appropriately controlling the circulation of paper currency,and accelerating the interest rate liberalization reform.