Author(s)

Huanxiang Chen

Corresponding Author

Huanxiang Chen

Abstract

With the rapid development of the digital economy, characterized by digitalization, networking, intellectualization, and platformization, the traditional monetary policy transmission mechanism is undergoing profound transformation. This paper systematically analyzes the impact of the digital economy on monetary policy transmission from multiple dimensions. It reveals that the digital economy has altered the stability, structure, and interest rate elasticity of money demand, while diversifying money supply subjects, blurring traditional monetary classification boundaries, and increasing the difficulty of central bank control. Regarding specific transmission channels, the digital economy has reshaped interest rate formation mechanisms, improved transmission efficiency, but also introduced uncertainty due to private digital currencies; it has diversified credit market structures, enhanced credit accessibility, and brought new risks; it has complicated asset price transmission by incorporating digital assets and intensified exchange rate volatility through cross-border digital currency flows. To address challenges such as anonymous transaction monitoring inefficiencies and cross-border regulatory gaps, the paper proposes a synergistic governance system combining technological innovation and policy regulation: technical means including blockchain-based penetrative monitoring, smart contract programmability, and privacy computing ensure traceability and controllability of transmission processes; policy measures such as classified hierarchical supervision, innovative monetary policy tools, and cross-border coordination mechanisms improve regulatory precision and stability. This study provides theoretical and practical references for optimizing monetary policy frameworks in the digital economy era, facilitating precise and efficient monetary policy implementation and maintaining economic and financial stability.

Keywords

Digital Economy; Monetary Policy Transmission Mechanism; Digital Currency; Money Demand; Money Supply; Interest Rate Transmission; Credit Transmission; Regulatory Framework