The Influence of Electronic Payment Development and Electronic Currency Substitution on Money Demand


2019-01-24 02:38

Shi Xinlu,Zou Zhengning
Journal of Central University of

Abstract: With the vigorous development of internet technology and the growing scale of electronic paymentthe issues related to electronic payment and electronic currency have become the focus of attention in theory and practiceThis paper divides electronic currency into bank card and third-party payment electronic currencyWe study the effect of two types of electronic currency on money demandrespectivelyAccording to Keynesian monetary demand theorymoney demand can be divided into transactionalspeculative and precautionary demandThereforethis paper studies the influence of electronic currency on the demand of money from these three aspectsThe results show that the substitution of bank card electronic currency for cash is incompleteno matter what kind of money demand is analyzed, while the third-party electronic currency can completely substitute for cash paymentBased on the above conclusionsthis paper points out the pace of interest rate liberalization should be accelerated in the futureWhile actively promoting the development of electronic payment and electronic currency in Chinait is necessary to explore more effective monetary policy in

the new economic environment

Key words: Electronic payment Electronic currency Money demand

The Chinese version appeared in Journal of Central University of Finance & Economics, 2018(12).




2019-01-24 10:40
The Historical Consciousness of Shakespeare’s Plays