Is the Dollar Becoming a Negotiated Currency? Evidence from the Emerging Markets

Otero‐Iglesias, Miguel; Steinberg, Federico

doi:10.1080/13563467.2012.685931

Cited by 13 publications

(8 citation statements)

References 19 publications

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“…Even the fraying faith in the US-led order because of the Trump administration may have great difficulties in overcoming in-stitutional inertia. 9 The US dollar's status has been more tarnished in the perception of state elites in the emerging markets than in reality (Otero-Iglesias and Steinberg, 2013). Hence, the world is not moving decidedly towards a 'leaderless currency system' (Cohen, 2012).…”

Section: Us Dollar: Withering Away or Holding The Line?mentioning

confidence: 99%

Measuring Currency Power from 2005 to 2018

Kotarski

Tan

2020

Polit. misao (Online)

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The main research goal of this paper is to empirically assess the state of US currency power relative to its main rivals in the period between 2005 and 2018. The most novel aspect of our inquiry is the design of three new composite indices called: Monetary Capability Index (MCI), Quality of Governance Index (QGI) and Currency Internationalization Index (CII). We argue that those indices are indispensable in an attempt to empirically measure the concept of currency power, both its underlying material and non-material resources, as well as the degree of their effective exploatation. Based on the conducted analysis it is visible that material resources are a necessary but not sufficient condition to wield and exert currency power which we proxy by currency internationalization. In that regard quality of governance remains indispensable to this effort. Our measurement shows that US currency power remains unshattered by the global financial crisis (GFC) and US dollar is still placed firmly at the top of international monetary and credit hierarchy. In spite of dangers emanating from Trump’s erratic policy, US rivals either face weakening of their currency power in terms of their monetary capability or still lag far behind the US in terms of their quality of governance.

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Section: Us Dollar: Withering Away or Holding The Line?mentioning

confidence: 99%

Measuring Currency Power from 2005 to 2018

Kotarski

Tan

2020

Polit. misao (Online)

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“…12) An international currency plays the three roles of money-as a medium of exchange, a unit of account, and a store of value-at both the public and the private levels, and accordingly performs six functions in total (Cohen, 1971(Cohen, , 2015. 13) See, for example, Chey (2015), Johnson (2008) and Otero-Iglesias andSteinberg (2012, 2013). Although a good number of political economy studies, including Cohen (1998) and Helleiner (2008), do recognize the need for demand-side analysis, the number of those that actually offer comprehensive consideration of the subject is limited.…”

Section: A Demand-side Approachmentioning

confidence: 99%

“…A majority of this new research places its analytic focus on the issue of whether the dollar will maintain its status as the dominant international currency, or if the RMB will instead replace it or substantially challenge its standing. 1) 1) See, for example, Bowles and Wang (2008), Chey (2012Chey ( , 2013aChey ( , 2015, Cohen (2012bCohen ( , 2015, Cohen and Benney (2014), Eichengreen (2011bEichengreen ( , 2013, Eichengreen and Kawai (2014), Eichengreen and Lombardi (2015), Helleiner (2008), Helleiner andKirshner (2009, 2014), Helleiner and Malkin (2012), Kirshner (2008Kirshner ( , 2009, Lee (2014), Liao andMcDowell (2015, 2016), Ly (2012), Norrlof (2014), Otero-Iglesias andSteinberg (2012, 2013), Stokes (2014), Subramanian (2011) and Subramanian and Kessler (2012). There…”

Section: ⅰ Introductionmentioning

confidence: 99%

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Who are the First Users of a Newly-Emerging International Currency? A Demand-Side Study of Chinese Renminbi Internationalization

2016

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“…6 See, for example, Helleiner and Malkin (2012). 7 See Chinn andFrankel (2007, 2008), Eichengreen andFlandreau (2008, 2012), Helleiner (2008), Kenen (2002), Krugman (1984), McNamara (2008), Norrlof (2014), Otero-Iglesias andSteinberg (2012, 2013), Stokes (2014) and Tavlas and Ozeki (1992). Given that domestic financial market development is both a necessary condition for CI and one of its consequences, there is circular causation between these two issues.…”

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confidence: 99%

Bringing the Central Bank into the Study of Currency Internationalization: Monetary Policy, Independence, and Internationalization

Chey

2016

SSRN Journal

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Despite the central bank's crucial position in the economy, as the issuer of the currency and the body responsible for monetary policy, its preferences regarding currency internationalization and its roles in that process have rarely been analyzed in the literature. This study attempts to fill this critical gap by bringing the central bank into the study of currency internationalization. A conventional understanding of currency internationalization is that it tends to reduce monetary policy autonomy, which implies a natural tendency of the central bank to oppose it. This study shows, however, that currency internationalization does not necessarily reduce the central bank's monetary policy autonomy, and may in fact even strengthen it. It shows that currency internationalization is likely to strengthen the central bank's independence as well. Based on these findings, this study argues that a central bank with weak monetary policy autonomy and low independence is more likely to support the internationalization of its country's currency. These arguments are empirically verified, mainly by in-depth analysis of the case of the People's Bank of China and the renminbi.

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Is the Dollar Becoming a Negotiated Currency? Evidence from the Emerging Markets

Cited by 13 publications

References 19 publications

Measuring Currency Power from 2005 to 2018

Measuring Currency Power from 2005 to 2018

Who are the First Users of a Newly-Emerging International Currency? A Demand-Side Study of Chinese Renminbi Internationalization

Bringing the Central Bank into the Study of Currency Internationalization: Monetary Policy, Independence, and Internationalization

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