The Study On The Impact Of The Development Of Electronic Payment On Money Multiplier In China

With the rapid development of Internet technology and Internet finance,the new concept of electronic payment has come into people's lives,replacing traditional cash payment methods and changing people's lives.The rapid spread of electronic payment brings convenience,but also affects the traditional mode of payment and the money supply structure,and further affects the money multiplier.Based on this background,this paper uses the combination of theory and empirical method to study the development of electronic payment on China's monetary multiplier impact.First of all,the development of China's electronic payment based on the status of China's electronic payment system for detailed classification,and then the introduction of the traditional money multiplier model.On this basis,in order to better analyze electronic payment influence on monetary multiplier,this paper studies the Friedman and Schwartz money multiplier model,Joe Morton monetary multiplier model,Kagan money multiplier model.Based on the above all money multiplier formula after the electronic payment factors involved in how the mathematical deduction of specific analysis of the electronic payment for the central bank,commercial Banks,the public,as well as the monetary multiplier impact the determinants which affect the money multiplier and push currencies in different currencies flow level.In the part of empirical analysis using multiple linear regression model,using cointegration test,error correction model,further empirical analysis on the relationship between the electronic payment and money multiplier.The results show that the electronic payment has amplification effect on monetary multiplier,increasing the monetary multiplier instability.Through the above theoretical analysis and empirical analysis,concluded that the development of electronic payment money multiplier has had an impact to our country.Increasing the instability of the money multiplier.On the basis of this,the impact of these influences on monetary policy is discussed,and some countermeasures are provided to the central bank in the formulation and execution of monetary policy.