Role of National Currencies in Transforming International Monetary System

2021 ◽  
pp. 109-117
Author(s):  
Vladimir Shapovalov
Keyword(s):  
International Monetary System ◽  
Monetary System ◽  
National Currencies

Wilfred Ethier. Modern International Economics. New York: W. W. Norton and Company. 1983. xviii + 588 pp.

1988 ◽  
Vol 27 (1) ◽  
pp. 81-83
Author(s):  
Nadeem A. Burney
Keyword(s):  
International Economic ◽  
New York ◽  
Economic Theory ◽  
International Economics ◽  
International Monetary System ◽  
International Markets ◽  
The Past ◽  
Monetary System ◽  
Recent Developments

Its been long recognized that various economies of the world are interlinked through international trade. The experience of the past several years, however, has demonstrated that this economic interdependence is far greater than was previously realized. In this context, the importance of international economic theory as an area distinct from general economics hardly needs any mentioning. What gives international economic theory this distinction is international markets for some goods and effects of national sovereignty on the character of economic activity. Wilfred Ethier's book, which incorporates recent developments in the field, is an excellent addition to textbooks on international economics for one- or twosemester undergraduate courses. The book mostly covers standard topics. A distinguishing feature of this book is its detailed analysis of the flexible exchange rates and a discussion of the various approaches used for their determination. Within each chapter, the author has extensively used facts, figures and major events to clarify the concepts in the light of the theoretical framework. The book also discusses, in a fair amount of detail, the existing international monetary system and the role of various international organizations.

Towards Rivalry or Concert? A China–US Financial Competition Triumvirate

2020 ◽  
Author(s):  
Falin Zhang
Keyword(s):  
International Monetary System ◽  
System Reform ◽  
Interstate Relations ◽  
Monetary System ◽  
Financial Governance ◽  
Pluralistic Approach ◽  
Micro Level ◽  
International Power ◽  
Opening Up

Abstract Given the pivotal role of finance in interstate relations as a prominent source of international power, China–US financial competition, or even confrontation, could be more intense and devastating than trade conflict. It hence merits greater policy and academic attention and communication between the two states. This article takes stock of a triumvirate of Chinese views regarding China’s financial rise and potential China–US financial competition that has empirical and epistemological dimensions. Empirically, it signifies three major issue areas: Renminbi (RMB) strategies and dollar hegemony; the China–US financial imbalance and debt relations; and US dominance of global financial governance and ‘Zhongguo Fangan’—Chinese Solutions. RMB strategies to break dollar hegemony include a further three areas: International Monetary System reform; RMB internationalisation; and financial opening-up. Epistemologically, the empirical analyses present a triumvirate of embedded and interweaved angles: normative and universal; technical and micro level; and power and nationalist. Based on a triumvirate of perspectives, it argues that China’s financial rise is variously limited in relevant fields, and that China–US financial competition also varies according to different issue areas associated with different financial powers, and thus calls for a reductionist, field-specific, and pluralistic approach to managing China–US financial competition.

scholarly journals Changes in the international monetary system: opportunities and risks for the US dollar

2020 ◽  
Vol 183 (5-6) ◽  
pp. 4-16
Author(s):  
Alicja Sielska ◽  
Keyword(s):  
Research Question ◽  
International Monetary System ◽  
Balance Of Power ◽  
Monetary System ◽  
National Currencies ◽  
The Us ◽  
Leading Position ◽  
Us Dollar ◽  
Global Arena ◽  
European Economies

In the 1940s, the US dollar was established as an international currency. Since then, its position has been practically unchallenged. However, in light of the financial crisis of 2008, the strengthening of the Chinese and European economies, and the COVID-19 pandemic, it is necessary to reflect on the future balance of power in the international monetary system. To this end, this article poses the following research question: is the US dollar facing a threat to its leading position in the global arena? First, I describe the historical currency system and the position of the dollar after the 2008 crisis; next I analyze the pandemic up through the end of June 2020. Then, I consider three possible scenarios for the dollar. First, it is possible to create a new global currency which would consist of a basket of the five most important world currencies. The second option is to replace the dollar with another currency, especially the euro or the renminbi. The third and most probable scenario is the compresence of several competing national currencies in international trade. Abandoning the dollar is possible, but it would require significant financial and institutional changes. This means that in the absence of any easy solutions for dethroning the US currency, it will remain the world’s leading currency.

International monetary fund after the financial crises of the 1990s

2001 ◽  
Vol 10 (1) ◽  
Author(s):  
Jiří Jonáš
Keyword(s):  
Financial Crisis ◽  
International Monetary Fund ◽  
Financial Crises ◽  
International Monetary System ◽  
Proper Role ◽  
Monetary System ◽  
Policy Strategies ◽  
The International Monetary Fund ◽  
The Imf

In this article, I would first discuss briefly what we know about the causes of the recent financial crises, and whether the International Monetary Fund (IMF) could have done more to prevent them. I will explain what policy strategies the IMF recommended to resolve these crises, why it recommended these policies, and to what extent is the criticism of these recommendations justified. In the second part, I will discuss the lessons which the IMF has drawn from these crises. I will explain how the experience of recent years has changed the thinking about the proper role of the IMF in supporting stable international monetary system. I will focus on two broad areas of changes in the activity of the IMF. First, on measures that are being taken to make the repetition of financial crises less likely; second, on measures to be applied if the prevention fails and if a financial crisis strikes again.

scholarly journals Kemal Dervis, Masahiro Kawai, and Domenico Lombardi (eds.). Asia and Policymaking for the Global Economy. Asian Development Bank Institute, Tokyo. Washington, D.C.: Brookings Institution Press, 2011. 200 pages, USD 19.95.

2011 ◽  
Vol 50 (2) ◽  
pp. 179-180 ◽  
Author(s):  
Uzma Zia
Keyword(s):  
Structural Transformation ◽  
Global Economy ◽  
World Economy ◽  
International Monetary System ◽  
Growth Dynamics ◽  
Policy Makers ◽  
Global Context ◽  
Monetary System ◽  
The Subject

Asia and Policymaking for the Global Economy is a collection of analysis on global economic cooperation. In particular it highlights Asia’s accomplishments, opportunities, its potential, and the role it can play in the global economy. It is divided into five chapters each constituting a different insightful article. The first chapter gives an introduction and an over view of the topics analysed in this book. It focuses on the structural transformation in Asia and the world economy, and discusses the rise of Asia and implications for economic coordination at international level. The second chapter focuses on growth dynamics in Asia in a global context. It provides an important contribution to the subject issue as it analyses the sources of structural transformation experienced by world economy. It suggests that policy-makers should focus on global savings and investment structures to rebalance world economy. The rebalancing debate is then connected to the debate on the international monetary system and role of reserve currencies in this chapter.

scholarly journals Bretton Woods 2 system and US balance of payment deficit

2008 ◽  
Vol 60 (1) ◽  
pp. 116-136
Author(s):  
Zaklina Stepanovic-Petrac
Keyword(s):  
International Monetary System ◽  
Financial Architecture ◽  
Bretton Woods ◽  
Monetary System ◽  
International Financial Architecture ◽  
National Currencies ◽  
The Us ◽  
The Usa ◽  
Us Dollar ◽  
Foreign Exchanges

The author explores the evolution, functioning, similarities and differences between the original Bretton Woods international monetary system that operated from 1945 to 1973 and the present modified institution, which is symbolically called Bretton Woods 2 System. The existing international financial architecture keeps on being based on the hegemony of the US dollar, as a dominant reserve currency. However, in spite of the fact that in most cases the present international monetary system implies the regime of flexible foreign exchanges rates, a characteristic of this system is that many countries in different degrees refuse to accept the appreciation of their national currencies to the US dollar. At the same time, the domination of the USA, the most indebted country in the world, is becoming a very serious threat to its sustainability. However, as the author concludes, the creators of the international monetary system, being aware how serious could be the consequences of its cessation, endeavor to extend its operation accepting less expensive consequences of keeping it alive.

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