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The Impact Of Money Supply And Electronic Money: Empirical Evidence From Central Bank In China, Rui Qin
The Impact Of Money Supply And Electronic Money: Empirical Evidence From Central Bank In China, Rui Qin
Applied Economics Theses
The purpose of this paper is to study the electronic money's influence on the money supply as well as the power of the central bank. We show in an illustrative theoretical model that electronic money will impact on money supply, especially affect M0 and M1. Using data of central bank in China during 1990 to 2010 and applying ordinary least squares (OLS) regression models, we find robust evidence that electronic money has a negative impact on M0, but a positive impact on M1. In addition, the central bank's abilities to control money supply can be affected by the wide application …