Will digital financial development affect the effectiveness of monetary policy in emerging market countries?

作者：Song Jiang, Shuang Qiu, Zhou Hong · 发表于：Economic Research-Ekonomska Istraživanja · 年份：2021 · DOI：10.1080/1331677x.2021.1997619 · 被引用次数：35 · 研究领域：Energy, Environment, Economic Growth、COVID-19 Pandemic Impacts、Housing Market and Economics

Whether digital finance should be included in the quantitative framework of monetary policy in emerging market countries has been widely discussed by scholars. However, the current research just focused on a single format of digital finance, lacking comprehensive analysis at the overall level and the refinement of general rules. Therefore, this paper constructed a spatial econometric model to empirically analyze the impact of digital finance on the effectiveness of monetary policy and its heterogeneity, taking China as the representative of emerging market countries. The empirical test showed that (1) Although the total index of digital finance had a negative impact on economic growth, the interaction between digital finance and monetary policy was significantly positive. This indicated that the “moderating effect” of monetary policy was beneficial to digital finance in promoting economic growth, which was confirmed from the subindexes level as well. (2) The development of digital finance had obvious characteristics of the “polarization effect” and the “spatial spillover effect”. Meanwhile, there was a significant regional difference in the “moderating effect” of monetary policy. (3) In terms of control variables, consumption level, fixed capital formation level, and fiscal policy all had a significant positive impact on economic growth, with a positive “spatial spillover effect”. Whereas, the impacts of COVID-19 and export level on economic growth were both negative. Hence, ...