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Online Money Flows: Exploring the Nature of the Relation of Technology’s New Creature to Money Supply—A Suggested Conceptual Framework and Research Propositions

DOI: 10.4236/ajibm.2018.82017, PP. 250-305

Keywords: Technology and Money Flows, E-Commerce Online Money Flows, Abduction Method, Online Money Flows and Money Supply (M2), Complex Systems Interaction

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Abstract:

Framing the analysis of Technology influences in an extended scenario of macroeconomic topics of the kind of Money Supply, attention is given to changes in economic paradigms that technology is constantly creating globally, focusing the research interest in the nature of the relation between cross border E-Commerce online money flows and Money Supply. As this context requires to find an explanation that cannot be provided by pre-existing theory, the abduction or abductive approach is considered to be suitable to investigate how far available data on the matter fits with the stated research subject identified at a crossroad of Technology Theory, Business Theories and Monetary Theory. The findings disclose that the nature of this relation is rooted in the Directionality, Dynamism, Intensity and Structural Properties, connected in a relational net that favors the configuration of a Theoretical body of knowledge. From the propositions’ relational models shape, a key finding come into sight as is supported the notion that cross border E-Commerce online money transfer, is a process by which cash money in circulation (Money Aggregate M1) is transformed into highly liquid assets other than cash, referred to as Quasi-Money, leading to dynamic changes for Money Supply net value and in the velocity of money. This view is consistent with the appreciation that being online money flows one new additional component of M2, they are absorbed by Money Supply being for that reason a priority issue for monetary policy interest. The emergent relational net, outlines a theory in which recognizing online money flows as a technology derived component—a technology creature—Technology influences reach the Economy at macro level by means of its effects over Money Supply M2 Aggregate. The research process

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