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Web of Proceedings - Francis Academic Press

On Innovation of Financial Products and Its Influence on Monetary Policy

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DOI: 10.25236/edssr.2020.036


Xiaoyan Zhang

Corresponding Author

Xiaoyan Zhang


With the advent of the era of big data, the domestic financial market is booming. In just a few years, a variety of innovative financial products flooded the Internet, causing earth-shaking changes to the entire financial market. Relying on big data and cloud technology, innovative financial products are developing rapidly, featuring high transparency, low cost, convenient transaction, high participation, fast speed and high efficiency. Therefore, the development of financial product innovation has its practical significance. However, while paying attention to its positive significance, it also brings some negative effects on monetary policy. The innovation of financial products affects the motive of money demand and the velocity of money circulation. Innovative financial products influence the transmission channels of monetary policy interest rate, bank loan and balance sheet. It can be seen that the innovative reform of mutual financial products relying on the Internet has a great impact on monetary policy. In this paper, new models of various financial products relying on Internet innovation are firstly sorted out in detail, and their development status and practical significance are analyzed. Then, under the background of current situation analysis, the impact of innovative financial products and monetary policy is systematically discussed.


Financial products, Monetary innovation, Monetary policy