Analysis of E-money's Impact on Monetary Policy

Monetary policy is an important tool to adjust and control economy in any country. But the performance of E-money in the entity economy hinders the traditional conduction mechanism and makes the effect of monetary policy unpredictable. For example, it challenges the traditional level of money, cuts cut the scale of balance sheet, and make it more difficult for the central bank to control market interest rate, money supply, excess reserve and money base, then affects choice and operation of monetary policy. So the central bank has to find out some new monetary policies suitable to new market circumstances. Suggestions offered by BIS are also used for reference.