|
|
|
| Hold Money Motive, Electronic Money Substitution and Money Supply |
| ZHOU Guangyou, ZHANG Yijia
|
| School of Economics,Fudan University |
|
|
|
|
Abstract The substitution of electronic money for the existing money has brought appreciably challenges to traditional finance, especially the impact on the money supply. This paper will use the electronic money in the form of third-party payment as the research object, introduce it into the theoretical analysis framework of money supply, and analyze the motivation of micro-subject's cash-holding and the driving factors of electronic money substitution by establishing the game model of consumers and merchants. This paper analyzed the impact of electronic money on the money supply, and the SVAR model is constructed for empirical testing. The results show that the cash leakage rate and electronic money usage are endogenous variables that affect the broad money multiplier. The substitution of electronic money for traditional currency will increase the broad money multiplier in the short run, but will suppress the money multiplier to further expand in the middle and later stages. On the whole, the contribution of the two endogenous factors to the broad money multiplier impact feedback is stable at 1.18% and 4.92% in the medium and long term.
|
|
Received: 14 September 2017
Published: 21 December 2018
|
|
|
|
|
|
|
|
