scholarly journals Road to a Great Monetary Power

2015 ◽  
Vol 01 (02) ◽  
pp. 265-282 ◽  
Author(s):  
Wei Li ◽  
Han Su
Keyword(s):  
International System ◽  
International Monetary System ◽  
The United States ◽  
Strategic Competition ◽  
Monetary System ◽  
Salient Dimension ◽  
Economic Engagement ◽  
Monetary Order ◽  
Reform And Opening Up ◽  
The U.S

Since the beginning of its reform and opening up over three decades ago, China has taken great efforts to integrate into the GATT/WTO-centered international trade system and the U.S. Dollar-centered international monetary system. By using the U.S. Dollar as the principal currency in its international economic engagement while exercising strict capital controls domestically, China has practically adopted a U.S. Dollar-dependent strategy to promote export, attract foreign investment, and maintain financial security, thus it has achieved lasting economic growth. However, with the declining credibility of the U.S. Dollar due to the U.S. financial crisis in 2008, and the increasing strategic competition between China and the United States, more and more Chinese in the policy and academic circles are skeptical of China's highly dependent monetary policy. Since 2009, China has begun to adopt a more proactive international monetary strategy by taking such measures as promoting the internationalization of the RMB, initiating new reforms of the international monetary system, and fostering a new regional monetary order. Such changes imply that China is changing its role: moving from being a dependent to a reformer of the U.S. Dollar system, which reflects a salient dimension of the evolving relationships between China and the broader international system.

scholarly journals TOWARDS A GLOBAL CURRENCY? CONDITION AND SCENARIOS FOR EVOLUTION OF THE INTERNATIONAL MONETARY ORDER

Ekonomika ◽  
2014 ◽  
Vol 93 (3) ◽  
pp. 7-24
Author(s):  
Karina Jędrzejowska
Keyword(s):  
International Monetary System ◽  
Extensive Literature ◽  
Monetary System ◽  
International Currencies ◽  
The Future ◽  
Transnational Actors ◽  
Rise Of China ◽  
Monetary Order ◽  
The Rise Of China ◽  
The U.S

The main goal of the paper is to examine the key features of the current international monetary system and provide an overview of scenarios for the future global monetary arrangements. It is noted that just a few years back there seemed to be a bipolar monetary system based on the U.S. dollar and the euro in the making. The rise of China and the possible emergence of the Chinese renminbi as an international currency gave way to a debate on a tripolar monetary system. Today, the future of the international monetary system is still open. It needs reforming in order to meet the requirements of the new global order with multiple growth centers, the growing role of transnational actors, and the increasing global influence of the major emerging economies.The analysis reveals that the relations among the major international currencies are changing, and today at least three scenarios for the future monetary order seem possible. These are the maintenance of the U.S. dollar domination, a shift towards a multipolar currency order, and the gradual regionalization of the currency order. The concept of a single currency – though theoretically attracting – seems impossible to be implemented in the foreseeable future. The analysis is based on monetary and economic theories, historical patterns of the development of monetary regimes, and an extensive literature overview backed by the data provided by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). 

What the US Should Learn from China for a More Balanced and Peaceful World

2012 ◽  
Vol 5 (3) ◽  
pp. 50-63 ◽  
Author(s):  
Fabio Massimo Parenti
Keyword(s):  
United States ◽  
Global Economy ◽  
International Monetary System ◽  
The United States ◽  
Economic Governance ◽  
Social Scientists ◽  
Systematic Analysis ◽  
Monetary System ◽  
The Us ◽  
The U.S

The growing importance of China in the global economy affects the reconfiguration of the international geography of power. In this scenario, the geopolitical order will be significantly redefined by the evolution of relations between China and the U.S. Based on the outcome of previous studies, and on the extensive efforts made by some social scientists, this paper provides a systematic analysis of the complexity and strategic implications of China–US relations. To make sense of these multivalent relations, after an initial introduction the paper is organized in three sections. The first section explores the structurally asymmetrical nature of relations between China and the US, focusing on economic policy decisions made by national elites. The second section focuses on the deepening U.S. debt, also underscoring the latest transformation trends experienced by an international monetary system that is still dollar–centred, and which several parties deem to be unsustainable. Lastly, the third section tries to provide evidence that growing instability in the global geopolitical order is intimately related to the economic and financial unbalances between China and the U.S. Hence, promoting more effective cooperation between China and the United States seems to be a priority. As substantiated in this paper, cooperation should, however, make the most of the Chinese developmental path, compared to that adopted by the United States – in terms of economic governance and geopolitical developmental path.

Book Reviews

2011 ◽  
Vol 49 (4) ◽  
pp. 1264-1265
Keyword(s):  
United States ◽  
Asset Management ◽  
International Monetary System ◽  
The United States ◽  
University Of California ◽  
Monetary System ◽  
Exorbitant Privilege ◽  
The University ◽  
The U.S

Alberto Giovannini of Unifortune Asset Management reviews “Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System” by Barry Eichengreen. The EconLit abstract of the reviewed work begins, “Explores the rise of the U.S. dollar to international prominence over the course of the twentieth century and considers what actions the United States can take to prevent it from losing its dominance. Discusses debut; dominance; rivalry; crisis; monopoly no more; and the dollar crash. Eichengreen is Professor of Economics and Political Science at the University of California, Berkeley. Index.”

scholarly journals The special drawing right: a formal critic to the dollar dominance in the international monetary system

2017 ◽  
Vol 37 (2) ◽  
pp. 401-416
Author(s):  
ALINE REGINA ALVES MARTINS
Keyword(s):  
United States ◽  
International Monetary System ◽  
The United States ◽  
Bretton Woods ◽  
Monetary System ◽  
Special Drawing ◽  
Political Interests ◽  
The U.S

ABSTRACT In the late-1960’s, international discussions over a possible reform of the international monetary system originated the Special Drawing Right (SDR). While they had been created initially to represent an additional asset to complement the existing reserves of U.S. dollars and gold, after the crisis of the Bretton Woods system the SDR was considered a possible substitute of the U.S. dollar. Relying on a consolidated literature, this article aims at demonstrating that the origins of the SDR were not the exclusive result of technical financial negotiations, but of the convergence of higher political interests against the United States and the dollar dominance.

The Politics and Economics of the U.S.-China Trade War

2019 ◽  
Vol 18 (3) ◽  
pp. 1-28 ◽  
Author(s):  
Deborah L. Swenson ◽  
Wing Thye Woo
Keyword(s):  
United States ◽  
Social Insurance ◽  
The United States ◽  
Economic Resilience ◽  
Economic Competition ◽  
Strategic Competition ◽  
Indigenous Innovation ◽  
Trade War ◽  
Economic Engagement ◽  
The U.S

The United States declared trade war after substantial defections from the internationalist (in geo-strategy and economics) lobby in U.S. politics to a new coalition between conflict-is-inevitable activists and anti-globalization proponents. Many internationalist businesses changed sides after experiencing disappointments on economic fronts including China's non-compliance with some of its World Trade Organization (WTO) obligations, China's acquisition of foreign technology at lower-than-expected prices, and the serious inadequacies in the WTO's governance of global trade. Many of the disillusioned internationalists have given too much weight to the contribution of globalization to negative developments in the U.S. labor market, and too little weight to the role of powerful capital-biased technological changes and to the inadequacies of state-provided programs for social insurance and human capital formation. Resolution of the trade war and prevention of its frequent occurrence will become more likely when (a) China adopts much greater reciprocity in its economic engagement with the advanced countries despite its status as a developing country under WTO rules; and (b) the United States stops equating geo-strategic competition with economic competition, recognizes that economic dynamism and economic resilience comes from strengthening indigenous innovation capability rather than from holding China back technologically, and institutes social programs to significantly reduce the trauma that is created by frequent job changes. Deep reform of the WTO is urgently needed but is unlikely to happen in the medium run. For the medium run, the United States should mobilize country cooperation in regional settings (like the Trans-Pacific Partnership [TPP]) to introduce policy innovations to serve as templates for a re-designed WTO architecture, and to harness collective market power to be used in future negotiations on WTO reform.

scholarly journals Le système monétaire européen : Le point de vue européen

2005 ◽  
Vol 12 (3) ◽  
pp. 533-547 ◽  
Author(s):  
Michel Lelart
Keyword(s):  
Interest Rates ◽  
International Monetary System ◽  
European Monetary System ◽  
The United States ◽  
European Monetary ◽  
International Capital Markets ◽  
Monetary System ◽  
American Interest ◽  
International Environment ◽  
The Stability

The evolution of the international monetary System prompted the nine members of the E.E.C. to establish a European Monetary System. The new statutes of the I.M.F. have in fact legalized the practice of flexible exchange rates and sanctioned the dollar's inconvertibility while eliminating the role of gold. Further, the increasing importance of the international capital markets fosters the unlimited expansion of international liquidities. it is in response to this context then that Europe seeks to create a zone of stability and to manage its own international tender in accordance with rules that it has set for itself. The author draws a positive conclusion as the System has operated without major problems so far. Nevertheless, difficulties remain: the international environment has not improved given the abrupt strengthening of the dollar and the increase in American interest rates. In addition, progress with regard to cooperation among the Nine remains slow and political change in France makes any prognosis respecting the future of the European Monetary System difficult. It was anticipated that the System would be Consolidated rapidly. It would in that event contribute more effectively to the stability of the international monetary System. It could, on the other hand, sharpen competition between Europe and the United States, between the Ecu and S.D.Rs. and between the European Monetary Fund and the International Monetary Fund.

scholarly journals Is China Trying to Push the U.S. out of East Asia?

2015 ◽  
Vol 01 (01) ◽  
pp. 59-84 ◽  
Author(s):  
Dong Wang
Keyword(s):  
United States ◽  
East Asia ◽  
International System ◽  
The United States ◽  
Willingness To Participate ◽  
Monroe Doctrine ◽  
Western Discourse ◽  
The Future ◽  
Regional Order ◽  
The U.S

One of the key questions for understanding the future trajectory of regional order is whether or not China is trying to push the United States out of East Asia and build a China-dominated regional order. Some Western analysts accuse China of pursuing the Monroe Doctrine and excluding the United States from the region. This article argues that the Western discourse of China practicing the Monroe Doctrine is a misplaced characterization of China's behavior. Rather than having intention of pushing the United States out of East Asia and build a China-dominated regional order, China is pursuing a hedging strategy that aims at minimizing strategic risks, increasing freedom of action, diversifying strategic options, and shaping the U.S.' preferences and choices. This can be exemplified in five issue areas: China's ties with the Association of Southeast Asian Nations (ASEAN), the Shanghai Cooperation Organization (SCO) and China's foreign policy activism, China-Russia relations, the Conference on Interactions and Confidence-Building Measures in Asia (CICA) and the New Asian Security Concept, as well as China-U.S. relations. Beijing has explicitly acknowledged the U.S. predominance in the international system and reiterated its willingness to participate in and reform the existing system. It concludes by suggesting that, for a more peaceful future to emerge in East Asia, the United States and China, as an incumbent power and a rising power, will have to accommodate each other, and negotiate and renegotiate the boundaries of their relative power, as well as their respective roles in the future regional order where Beijing and Washington would learn to share responsibilities and leadership.

How China Loses

2020 ◽  
Author(s):  
Luke Patey
Keyword(s):  
United States ◽  
Global Economy ◽  
The United States ◽  
Business Managers ◽  
New Era ◽  
Strategic Competition ◽  
The World ◽  
Political Differences ◽  
Economic Engagement ◽  
Rising Power

China wants to replace the United States as the world’s leading superpower. But what does the world want from China? In a new era of strategic competition between China and the United States, Luke Patey explores how the rest of the world is responding to China’s rise. Many fear that China’s economic power, tech innovations, and growing military might will allow it to remake the world in its own authoritarian image. But despite all its strengths, a future with China in charge is far from certain. China will rule the twenty-first century only if the world lets it. How China Loses tells the story of China’s struggles to overcome new risks and endure the global backlash against its assertive reach. Combining on-the-ground reportage with incisive analysis, Patey argues that China’s predatory economic agenda, headstrong diplomacy, and military expansion undermine its global ambitions. In travels to Africa, Latin America, East Asia, and Europe, his encounters with activists, business managers, diplomats, and thinkers show the challenges threatening China’s rising power. China’s relations with the outside world are reaching a critical juncture. Political differences and security tensions have risen, and many countries are now recognizing that economic engagement produces new strategic vulnerabilities to their competitiveness and autonomy. At a time when views from Washington and Beijing dominate the discussion, Patey’s work shows how perspectives from around the world will shape the global economy and world affairs.

scholarly journals International Monetary Relations: Taking Finance Seriously

2017 ◽  
Vol 31 (3) ◽  
pp. 3-28 ◽  
Author(s):  
Maurice Obstfeld ◽  
Alan M. Taylor
Keyword(s):  
Exchange Rates ◽  
International System ◽  
Current System ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Minimal Risk ◽  
International Liquidity ◽  
Monetary System ◽  
Financial Conditions ◽  
Monetary Relations

In this essay, we highlight the interactions of the international monetary system with financial conditions, not just with the output, inflation, and balance of payments goals usually discussed. We review how financial conditions and outright financial crises have posed difficulties for each of the main international monetary systems in the last 150 years or so: the gold standard, the interwar period, the Bretton Woods system, and the current system of floating exchange rates. We argue that even as the world economy has evolved and sentiments have shifted among widely different policy regimes, there remain three fundamental challenges for any international monetary and financial system: How should exchange rates between national currencies be determined? How can countries with balance of payments deficits reduce these without sharply contracting their economies and with minimal risk of possible negative spillovers abroad? How can the international system ensure that countries have access to an adequate supply of international liquidity—financial resources generally acceptable to foreigners in all circumstances? In concluding, we evaluate how the current international monetary system answers these questions.

Systemic Conflict and Regional Monetary Integration: The Case of Europe

1998 ◽  
Vol 52 (3) ◽  
pp. 537-573 ◽  
Author(s):  
C. Randall Henning
Keyword(s):  
United States ◽  
Open Economy ◽  
Domestic Politics ◽  
International Monetary System ◽  
The United States ◽  
System Stability ◽  
Monetary Integration ◽  
The European Union ◽  
Monetary Cooperation ◽  
Monetary System

Existing explanations of European monetary integration, emphasizing economic interdependence, issue linkage, institutions, and domestic politics, take a predominantly regional approach. In the international monetary thesis developed here, I argue that U.S. policy disturbances, transmitted through the international monetary system, created compelling incentives for European states to cooperate on exchange-rate and monetary policy. I develop a general theory of macroeconomic power, based on open economy macroeconomics, and show how the exercise of such influence can drive regional monetary integration. This article then tests the international thesis with reference to monetary integration within the European Union by examining four periods in which the United States acted to stabilize the international monetary system and seven episodes in which it disrupted the system. European governments and central banks reduced regional monetary cooperation when the United States supported system stability and strengthened it after each episode of disruption. The evidence thus strongly supports the inference that the link is causal.

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