THE IMPACT OF ELECTRONIC MONEY ON THE EFFECTIVENESS OF MONETARY POLICY

The primary objective of this research is to elucidate and describe the significance of the electronic money on the functions of the central bank and monetary policy. In addition, to determine the effects of electronic money on the role of central banks in their management of monetary policy. The application and mechanics of electronic money are discussed, which are related to the implementation of current practices, the functions of the central bank and monetary policy. The research found there is empirical evidence showing the effect of electronic money on the price of re-discount, the impact of electronic money on the open market, the impact of electronic money on the legal reserve, the size of the reserve held by the central bank, the effectiveness of the policy of the legal reserve as a tool for monitoring credit