Internationalization of the renminbi: what it means for the stability and flexibility of the international monetary system

Jenkins, Paul; Zelenbaba, John

doi:10.1093/oxrep/grs021

Cited by 11 publications

(5 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…With the rapid slowdown of the performance of the U.S. economy and trade, there are concerns being raised about the dollar as the single dominant reserve currency and the asymmetry in adjustments to shocks. There is no mechanism for adjustment, especially real exchange rate adjustment in surplus countries (Jenkins and Zelenbaba 2012).…”

Section: Resultsmentioning

confidence: 99%

Untitled

2020

AJBE

View full text Add to dashboard Cite

Section: Resultsmentioning

confidence: 99%

Untitled

2020

AJBE

View full text Add to dashboard Cite

“…It would also promote the liberalisation of the Chinese financial market, which would benefit consumers and businesses. In addition, it would be an important element of the transition to a more demand-driven growth model by reducing incentives to build up reserves from prudent motives and maintain an exchange-rate pegging purposes [22].…”

Section: Resultsmentioning

confidence: 99%

“…This demand can be met by the country issuing reserve currency. This asymmetry and the lack of an adjustment mechanism, in particular the real exchange-rate adjustment in surplus countries, is an important reason for the accumulation of global imbalances [22].…”

Section: Introductionmentioning

confidence: 99%

“…Another threat pointed out during the financial and economic crisis of 2008-2009 is related to the monetary policy of the US [22]. The US monetary authorities have focused only slightly on ensuring global liquidity, and the FED has used quantitative easing to achieve its own national objectives, with little regard for the impact of such actions on the international system.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of the Renminbi Internationalization on the Global Monetary Order

Twarowska

2019

SSA

View full text Add to dashboard Cite

Background and the purpose: The Chinese economy is the fastest growing and changing economy in the modern world. The importance of the renminbi as an international currency is not relevant to China's economic potential and role in the global economy, however, many scientific studies indicate that the position of that currency in the functions of international money will become stronger in the future. This encouraged the author to assess the consequences of the renminbi internationalisation, in particular the impact on the stability of the international monetary system. An additional aim of the paper is to present the possible scenarios for reform of the international monetary system and assess whether the Chinese currency has a chance to become a global currency. Methods: The assessment of the renminbi’s role in global foreign exchange relations was carried out by analysing the use of Chinese currency in the main functions of international money in official sector (reserve currency, intervention currency, anchor currency) and private sector (investment currency, vehicle currency in international trade and on the foreign exchange market, invoicing and quotation currency) using the Cohen matrix. The author also assessed the benefits for the stability of the international monetary system, resulting from the transition from a system based on the dominance of the US dollar to a multi-currency system, including the renminbi. The study included theoretical research (analysis of the literature and research reports) and empirical research (analysis of statistical data). Results and conclusions: The author confirmed the research hypothesis: An increase in the use of renminbi in the functions of international currency will increase the stability of the international monetary system by reducing the dependence of this system on the single currency, which is the US dollar.

show abstract

“…The existing literature on RMB internationalisation largely parallels the treatment of currency internationalisation more generally, by focusing on the external economic constraints and functions performed by such a currency. Jenkins and Zelenbaba ( 2012 ), for example, use a taxonomy of roles for an international currency, first developed by Cohen ( 1971 ), to assess the efforts to internationalise the RMB. 4 Bowles and Wang ( 2013 ) provide a thorough but similarly categorised assessment of these policies, which they see originating in China’s response to the vulnerability of its exports to fluctuations in the value of the dollar (cf.…”

Section: The Political Economy Of World Money: Conceptual Connectionsmentioning

confidence: 99%

Welfare and world money: the domestic foundations of currency internationalisation

Germain

2020

J Int Relat Dev

View full text Add to dashboard Cite

This essay explores the domestic foundations of currency internationalisation. I consider how a state that internationalises its currency might sustain the domestic economic and social costs of doing so. In particular I highlight the role of welfare provision as a neglected element of the domestic political economy of currency internationalisation. I examine the trajectory of welfare provision in Britain (1870-1930), the United States (1950-2020) and China (2000-2018), and use this data to consider some of the ways in which these costs might be related to the question of issuing world money. In this essay I suggest, first, that our conceptual framework for understanding currency internationalisation is strengthened when we consider welfare provision as an important element of the domestic foundation of issuing world money; and, second, that it is unclear whether the current level of welfare provision in China is adequate to meeting the costs to China of fully internationalising its currency as world money. This framework generates further insights about how China's challenge to American monetary leadership remains incomplete, and provides another angle of vision by which we might assess the multifaceted foundations of US dollar domination in the global political economy.

show abstract

Internationalization of the renminbi: what it means for the stability and flexibility of the international monetary system

Cited by 11 publications

References 5 publications

Untitled

Untitled

The Impact of the Renminbi Internationalization on the Global Monetary Order

Welfare and world money: the domestic foundations of currency internationalisation

Contact Info

Product

Resources

About