(1) The ultimate goal of monetary policy has changed. The ultimate goal of monetary policy in the traditional sense mainly includes economic growth, price stability, full employment and balance of payments.
(2) Fintech has increased the vulnerability of the financial system, and the prevention of systemic risk has become an important goal of economic development, and has also put forward new requirements for the regulatory objectives of monetary policy: the primary objective has changed from focusing on serving economic growth to emphasizing the ****same goal of serving economic growth and maintaining financial stability.
(3) Since the ultimate goal of monetary policy is not unique, the money supply is adopted as the intermediate goal of monetary policy and plays the role of the nominal anchor of the monetary policy target.
2. The development of financial technology has made the performance of the money supply on the monetary policy ultimate goal stare increasingly weak. Performance:
(1) The development of financial technology makes the link between money supply and demand no longer stable.
On the one hand, the prices of goods and services are more easily adjusted precisely with the application of big data and deep learning algorithmic technology;
On the other hand, electronic money has triggered a change in the way of payment and transaction, and consumers' demand for base money has been reduced thus triggering more frequent price changes.
(2) Part of the financial derivatives business brought by fintech has a certain money creation function, blurring the boundaries of the monetary hierarchy, weakening the effectiveness of the central bank's control over the money supply, and weakening the measurability and controllability of the money supply accordingly.
(3) Fintech is conducive to mitigating information asymmetry, thereby reducing transaction costs and increasing the market's sensitivity to interest rates, which in turn improves the effectiveness of price-based monetary policy tools, and ultimately indirectly weakening the effect of quantitative monetary policy with the money supply as the nominal anchor.