Traditional Culture Encyclopedia - Traditional culture - How does the circulation of electronic money affect the circulation of money?
How does the circulation of electronic money affect the circulation of money?
The main factors affecting the speed of money circulation are: cash ratio, "liquidity" of money supply, degree of financial electronicization and degree of money electronicization, which have different effects on the speed of money circulation. Further analysis shows that China's electronic money has two obvious substitution effects on traditional money: one is the substitution acceleration effect, and the other is the substitution transformation effect. The existence of two substitution effects makes electronic money not accelerate the circulation of money, but lead to the decline of currency circulation.
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