Department Chair
Frederick Floss
Date of Award
5-2017
Access Control
Open Access
Degree Name
Applied Economics, M.A.
Department
Economics and Finance Department
Advisor
XingWang Qian
Department Home page
http://economics.buffalostate.edu/
First Reader
XingWang Qian
Second Reader
Theodore Byrley
Third Reader
Frederick Floss
Abstract
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 of electronic money. Further, these results could help central banks and financial institutions predict the economics environment and take necessary actions, eliminate these influences and reinforce the stability of money markets.
Recommended Citation
Qin, Rui, "The Impact of Money Supply and Electronic Money: Empirical Evidence from Central Bank in China" (2017). Applied Economics Theses. 22.
https://digitalcommons.buffalostate.edu/economics_theses/22
