The Impact Of Internet Finance On The Monetary Policy

With the development of information technology and the rise of mobile payment,coupled with the further reform,development and improvement of the financial market,Internet finance has developed at a rapid pace.Internet finance models include crowdfunding,P2P online lending,third-party payment,digital currency,big data finance,information financial institutions,and internet financial portals.The most common and most influential of the real financial system are P2P online lending and third-party payment.The impact of P2P online lending on the interest rate market and the impact of third-party payments on the money multiplier will directly affect the money market,which in turn will affect the effectiveness of the relevant government departments in the formulation and implementation of monetary policy.Moreover,as a new thing,Internet finance has problems such as its own system is not perfect,and the relevant departments in the supervision field lack experience to learn from it.They can only cross the river by feeling the stones,and constantly explore and can play the role of Internet finance in promoting the real economy.Avoiding the lack of supervision of Internet finance leads to the unfavorable factors that the overall financial market systemic risk is amplified.Therefore,although the development of Internet finance not only complements China's existing financial system,but also has a certain role in promoting the real economy,its impact on the effectiveness of monetary policy needs further research and analysis to better foster strengths and avoid weaknesses.Give full play to the effect of Internet finance on the real economy,and formulate monetary policies more rationally and minimize the current risks that Internet finance brings to the entire financial system.Through theoretical and empirical analysis,this paper finds that the birth and development of third-party mobile payment has a certain impact on the supply of basic money,weakening the central bank's control over the scale of credit of commercial banks,and increasing the instability of the transmission process of interest rates and credit scale.Sexuality has weakened the central bank's control over interest rates and reserves in a short period of time.This paper creatively divides the objectives of monetary policy into intermediate targets and ultimate goals.Intermediary targets refer to the direct impact of monetary policy on target M2 and interest rates.The ultimate goal refers to the target GDP and the total lending of financial institutions that monetary policy hopes to ultimately affect.Then through the existing Internet finance theory and monetary theory,the theoretical analysis of the possible impact of the development of Internet finance on traditional monetary policy.Then obtain the required data from China Knowledge Network,iResearch website,Bank of China website,Dongbei University of Finance and Library and Wande client,and select data from the first quarter of 2009 to the first quarter of 2018 using impulse response Analysis and variance decomposition analysis Two empirical analysis methods verify the speculations obtained by theoretical analysis,and finally draw the extent and manner of Internet finance's influence on monetary policy and propose policy recommendations.At the same time,it has had a certain impact on the stability of interest rate transmission channels in the short term,but long-term The impact is small,and the impact on economic growth,the ultimate goal of monetary policy,is not very large.This paper proposes to enrich the monetary policy regulation intermediary index system to prevent the intermediary target from affecting the monetary policy adjustment effect;to incorporate Internet finance into the reserve control system,and to strengthen the reserve power system's regulation of credit scale,and thus to protect credit transmission channels.Sexuality;change the monetary policy regulatory framework,pay more attention to the use of price-based tools such as interest rates with better transmission;prevent Internet financial risks from impacting the monetary policy enforcement environment,thus protecting the currency Suggestions such as the effectiveness of policy implementation.