With the widespread application of electronic money and the computerization of settlement,the central bank issued base money(cash and commercial bank deposits at the central bank) is to withdraw from people’s day-to-day economic activity,the growing medium of exchange may be losing its touch the body, the development of electronic money.
The central bank reduced the public’s demand for base money,which is bound to weaken the effectiveness of monetary policy in the past, and may even lose its effect on the formation of the central bank’s monetary policy a severe challenge.Despite such challenges in the performance of China’s far less than fully developed,but we must also be prepared to understand the research in developed countries,combined with the actual conduct of research in our country.
This article related to domestic and international monetary theory as a guide, drawing on the experience of developed countries operate on the development of electronic money on monetary policy the Central Bank conducted a preliminary analysis, is divided into eight parts,the first part,introduced the study of issues related to and methods.
The second part introduces the basic concepts of electronic money,the main form of development,as well as domestic and foreign problems.
The third part introduces the central bank’s monetary policy tools,as well as in the regulation of market applications.The fourth part of an analysis of electronic money on the impact of money supply,e-money not only in different currencies blurred the boundaries between levels,and the role of banks as a result of the network,the different forms of currency, showing a high degree of instability.The emergence of electronic money so that larger monetary multiplier.
Part Ⅴ, to Keynes theory of money demand,analysis of electronic money on monetary demand.
Part Ⅵ, by regression model analysis of electronic money on the effects of velocity of money circulation.E-money alternative to the traditional currency of the existence of two distinct substitution effect:an alternative to accelerate the effect and the substitution into effect.The role of the two effects of the phase characteristics of a clear,but e-money replaced the traditional currency and did not speed up the velocity of money circulation,it has led to a decline in velocity of money circulation.
Part Ⅶ, Analysis of electronic currency on the impact of central bank monetary policy.Flow of electronic money could lead to the loss of the currency the central bank the right to loss of seigniorage revenue,monetary policy failure.
Part Ⅷ, by the previous analysis,summarized:In the face of the rapid development of electronic money,as soon as possible,China should take effective measures to regulate and promote the development of electronic money.As soon as possible,establish a sound legal framework for electronic money,are clearly relevant to the subject of rights and obligations.This article provides an analysis of electronic money in the development of a range of issues exist,as well as the impact of central bank monetary policy and,in this based on the coping strategies of our country.