Research On The Impact Of Digital RMB On My Country's Monetary Policy Transmission Mechanis

With the continuous development of global financial technology,legal digital currency has gradually become an important form of currency in various countries.In 2014,China set up a special team for digital RMB and began to focus on the issue system of digital currency,underlying key technologies and paths.As a new form of currency in China,digital RMB is bound to have an important impact on China’s monetary policy transmission system,which also directly affects the final implementation of China’s monetary policy.Starting from the perspective of "the central bank selects monetary policy tools →affects the intermediary goal → achieves the final goal",this paper discusses the specific impact of the issuance of digital RMB on the transmission of monetary policy in China from the two paths of quantitative and price-based monetary policy transmission,and provides some theoretical support for improving the effectiveness of China’s monetary policy,To further improve the impact study and design criteria of the issuance of digital RMB.This paper first combs the relevant literature of digital RMB and monetary policy transmission,describes the development status of digital RMB and monetary policy based on China’s national conditions,analyzes the transmission mechanism of quantitative and price-based monetary policy,and analyzes the background of China’s quantitative and price-based transformation by constructing TVP-VAR model that can clearly reflect the characteristics of different economic development periods,The impact of the issuance of digital RMB on the transmission mechanism of China’s quantitative and price-based monetary policy.First,take the broad money multiplier as the representative,study the influence of digital RMB on the transmission of quantitative monetary policy;Secondly,based on the current interest rate system,taking the inter-bank lending rate as the representative,this paper studies the impact of digital RMB on the transmission of price-based monetary policy.The conclusions are as follows: First,for the transmission of quantitative monetary policy,the issuance of digital RMB increases the uncertainty of monetary multiplier,thus reducing the transmission effect of monetary policy.Second,for the transmission of price-based monetary policy,the issuance of digital RMB improves the elasticity of interest rate,reduces the lag of interest rate,and makes the transmission of price-based monetary policy more effective.Third,the issuance of digital RMB by the central bank is not conducive to the realization of the final policy objectives.Finally,based on the impact of the issuance of digital RMB on China’s quantitative and monetary policy in the context of the quantitative and price transition of China’s monetary policy,this paper puts forward the following policy recommendations: First,it is necessary to clarify the impact mechanism of the issuance and promotion of digital RMB on China’s monetary policy transmission mechanism,and effectively promote the quantitative and price transition of China’s monetary policy.Secondly,we should promote the R&D and innovation of relevant monetary policy tools such as the digital RMB interest rate,and focus on the important role of the digital RMB interest rate in China’s interest rate policy.Finally,at the beginning of the volume and price transition,the central bank should focus on the social financing scale in the short term and the interest rate index in the long term.