This paper investigates the stability of the international monetary system using the new open economic analysis framework. Our research has discovered that conditions for the stability of the international monetary sy...This paper investigates the stability of the international monetary system using the new open economic analysis framework. Our research has discovered that conditions for the stability of the international monetary system are such that the economic volume of reserve currency countries must be large enough and that the solvency capacity growth rate of reserve currency countries should be no lower than the real output growth rate of non- reserve currency countries and the real return of the reserve currency,＂ the existence of the valuation effect cannot secure the stability of a reserve currency,＂ and inclusion of the euro and the Japanese yen into international reserve currencies cannot stabilize the international monetary system, while Renminbi internationalization plays an irreplaceable role to the stability of the international monetary system.展开更多
The continued devaluation of the renminbi（yuan）,China＇s legal tender,has sparked concerns both in China and abroad.The depreciation trend that started in August 2015 hasn＇t shown any signs of reversing,but as a ma...The continued devaluation of the renminbi（yuan）,China＇s legal tender,has sparked concerns both in China and abroad.The depreciation trend that started in August 2015 hasn＇t shown any signs of reversing,but as a matter of fact,the depreciation of the yuan is an inevitable outcome of its internationalization,China is moving to turn the yuan into a global currency.展开更多
The use of an intemational currency is not just a natural market phenomenon; it relies heavily on international political foundations. The historical lessons of the four major international currencies--the pound, doll...The use of an intemational currency is not just a natural market phenomenon; it relies heavily on international political foundations. The historical lessons of the four major international currencies--the pound, dollar, euro and yen--show that a strong partner network and a favorable international institutional environment are the two major political foundations for the formation of a stable international currency. The rise of the renminbi, as a late starter looking to become a major international currency, depends not only on the requisite economic conditions but on governmental diplomacy aimed at attracting more monetary cooperation partners and creating international institutions that support its worldwide use. This strategy reinforces the political foundations for the rise of the renminbi. Building a network of partners supporting the renminbi as an international currency and creating a system of international monetary institutions are the real tests of the issuing country＇s political leadership. This political leadership capacity has three dimensions： public trust founded on reputation building; a centripetal force driven by provision of benefits; and coercive force applied through sanctions. Comparatively speaking, the renminbi is still in the early stage of its ascent, so the development of its political infrastructure should concentrate mainly on gaining public trust through reputation-building and employing centripetal force involving provision of benefits.展开更多
基金the research program Renminbi Internationalization and Adjustment of Internal and External Imbalances of China’s Economy(NKZXB1222)supported by the Special Fund of Fundamental Scientific Research of Central Universities
文摘This paper investigates the stability of the international monetary system using the new open economic analysis framework. Our research has discovered that conditions for the stability of the international monetary system are such that the economic volume of reserve currency countries must be large enough and that the solvency capacity growth rate of reserve currency countries should be no lower than the real output growth rate of non- reserve currency countries and the real return of the reserve currency,＂ the existence of the valuation effect cannot secure the stability of a reserve currency,＂ and inclusion of the euro and the Japanese yen into international reserve currencies cannot stabilize the international monetary system, while Renminbi internationalization plays an irreplaceable role to the stability of the international monetary system.
文摘The continued devaluation of the renminbi（yuan）,China＇s legal tender,has sparked concerns both in China and abroad.The depreciation trend that started in August 2015 hasn＇t shown any signs of reversing,but as a matter of fact,the depreciation of the yuan is an inevitable outcome of its internationalization,China is moving to turn the yuan into a global currency.
文摘The use of an intemational currency is not just a natural market phenomenon; it relies heavily on international political foundations. The historical lessons of the four major international currencies--the pound, dollar, euro and yen--show that a strong partner network and a favorable international institutional environment are the two major political foundations for the formation of a stable international currency. The rise of the renminbi, as a late starter looking to become a major international currency, depends not only on the requisite economic conditions but on governmental diplomacy aimed at attracting more monetary cooperation partners and creating international institutions that support its worldwide use. This strategy reinforces the political foundations for the rise of the renminbi. Building a network of partners supporting the renminbi as an international currency and creating a system of international monetary institutions are the real tests of the issuing country＇s political leadership. This political leadership capacity has three dimensions： public trust founded on reputation building; a centripetal force driven by provision of benefits; and coercive force applied through sanctions. Comparatively speaking, the renminbi is still in the early stage of its ascent, so the development of its political infrastructure should concentrate mainly on gaining public trust through reputation-building and employing centripetal force involving provision of benefits.
