Asymmetric dependence in international currency markets

The article addresses international currency conflicts. The research has found that currency conflict has extensive economic effects, especially on the United States and the weak peripheral countries of the Eurozone, as well as Canada, and some other countries that do not intervene in the currency markets. The author has revealed that these developments and ill-effects of global currency manipulation stem from a gaping hole in the international economic architecture. The theoretical significance of the article’s outcomes is that the most fundamental flaw in the entire global regime encompasses both the monetary and trading systems, and indicates a massive failure of international cooperation. The practical significance of the paper is that it has outlaid a feasible set of effective systemic reforms that can be adopted to counter the objectionable practices today and deter them in the future. The author concludes that it is very much in the interest of all the world’s countries to initiate a multilateral effort to work out a constructive solution to a significant international and systemic problem.

Download Full-text

Chapter IV. The World Economy

National Institute Economic Review ◽

10.1177/002795017507100105 ◽

1975 ◽

Vol 71 ◽

pp. 72-96

Keyword(s):

International Trade ◽

Energy Conservation ◽

World Economy ◽

Normal Rate ◽

Currency Markets ◽

International Currency ◽

The World ◽

Post War ◽

Direct Measures

1974 ended as it had begun, in an atmosphere of crisis for the world economy. But while inflation remained at or near the forefront of official preoccupations, in other respects the nature of the crisis had been changing gradually as the year progressed. Initially it had seemed that the main obstacles to a normal rate of expansion of output and trade would be shortage of energy and highly unstable conditions in the international currency markets. In practice, however, the vast funds now at the disposal of the oil-producing countries have not so far proved to be particularly volatile and except in the early part of the year the level of petroleum output that they have been prepared to allow has exceeded the importing countries' requirements. Moreover, the weakness of effective demand for oil has been due less to direct measures of energy conservation than to general economic depression throughout the year at a level of output, for the OECD area as a whole, which on average was some 1 1/2 per cent below the rate achieved by the fourth quarter of 1973. This situation seems certain to persist well into 1975 and to bring with it levels of unemployment which, by post-war standards, will be exceptionally high, as well as an initially declining volume of international trade.

Download Full-text

Money Hard and Soft on the International Currency Markets.

The Journal of Finance ◽

10.2307/2327483 ◽

1981 ◽

Vol 36 (1) ◽

pp. 213

Author(s):

Aryeh Blumberg ◽

Brendan Brown ◽

Robert Z. Aliber

Keyword(s):

Currency Markets ◽

International Currency

Download Full-text

The internationalization of the chinese rmb: road to the status of a world currency

Общество и экономика ◽

10.31857/s020736760016143-6 ◽

2021 ◽

pp. 105

Author(s):

Dmitriy Kondratov

Keyword(s):

Foreign Trade ◽

Foreign Currency ◽

Financial System ◽

National Currency ◽

Currency Markets ◽

International Currency ◽

Goods And Services ◽

The Status ◽

Private Savings ◽

The Stability

The economic successes achieved by the PRC in recent years naturally raised the question of the possibility of converting the national monetary unit (yuan) into an international currency, which would play a significant role in servicing the country's foreign trade and investment relations, and in the turnover of global currency and financial markets. An effective solution to this problem can provide China with a number of long-term geopolitical and economic advantages; in particular, it would significantly increase the competitiveness of the financial system and the inflow of foreign capital into it. The basic prerequisites for the internationalization of the yuan have already been established: in terms of GDP and exports of goods and services, the PRC is one of the leading countries in the world, with significant foreign exchange assets accumulated, that ensure the stability of the financial system. For the successful promotion of the national currency abroad, there are still some obstacles, in particular, the free convertibility of the yuan has not been introduced and the capacity of the financial market is insufficient, which reduces the interest of foreign investors in the yuan. The emergence of the Chinese national currency as a full-fledged international currency implies a significant increase in its role in foreign trade operations of the PRC, an increase in the use of yuan financial instruments for placement by non-residents of private savings and official reserves, a further increase in volumes and diversification of conversion operations with the yuan in the domestic and foreign currency markets.

Download Full-text