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.

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.”

Arabic Language Instruction

1971 ◽  
Vol 5 (2) ◽  
pp. 1-23 ◽  
Author(s):  
Peter F. Abboud
Keyword(s):  
United States ◽  
World War Ii ◽  
Arab World ◽  
The United States ◽  
Arabic Language ◽  
Language Instruction ◽  
World War ◽  
Global Power ◽  
Political Interests ◽  
The U.S

The last fifteen years have witnessed rapid growth in the number of students studying Arabic and of programs concerned with the teaching of the language. This is directly attributable to the awakened interest in the United States in the Middle East in general, and the Arab world in particular, as a result of the entry of the U.S. in World War II and its emergence as a global power with strategic, economical, and political interests in the area. This is not to say that the teaching of Arabic is a new phenomenon in the U.S. As an indespensible tool of Orientalistic scholarship, Arabic was taught for many years in a few institutions which offered programs in Oriental and Semitic Studies.

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.

The “Sanctions” of the International Monetary Fund

1972 ◽  
Vol 66 (4) ◽  
pp. 737-762 ◽  
Author(s):  
Joseph Gold
Keyword(s):  
International Monetary Fund ◽  
International Monetary System ◽  
The United States ◽  
Legal Structure ◽  
Monetary System ◽  
Special Drawing ◽  
Third Stage ◽  
Special Drawing Rights ◽  
Two Stages ◽  
The International Monetary Fund

Recent events in the international monetary system culminating in the decision of the United States, announced on August 15, 1971, to suspend the convertibility of the dollar induce the international lawyer to ask once again what contribution sanctions can make to respect for international law and the effectiveness of multilateral treaties. This question has been a practical problem at two stages in the development of the International Monetary Fund. It arose first during the negotiation and drafting of the original Articles of Agreement which were adopted at the Bretton Woods Conference in July 1944. The second stage was the negotiation and drafting of the amendment of July 28, 1969, which dealt mainly with the legal structure of special drawing rights as a supplement to existing reserve assets. It is now apparent that there will be a third stage, in which a reform of the international monetary system, perhaps in some of its most fundamental aspects, will lead to a further amendment of the Fund's charter.

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.

The Principles and Operation of the Bretton Woods International Monetary System in the Years 1944–1971. The Reasons for Its Collapse

2016 ◽  
Vol 8 (2) ◽  
pp. 0-0
Author(s):  
Zbigniew Klimiuk
Keyword(s):  
International Trade ◽  
World Economy ◽  
International Monetary System ◽  
The United States ◽  
International Liquidity ◽  
Bretton Woods ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
The Stability

The subject of the article is an analysis of the role of the US dollar in the development of international trade and the world economy during the period of the Bretton Woods monetary system (1944–1971). The international monetary system existing at that time was, in principle, a gold exchange standard based mainly on the national currency of the United States. However, a relatively small role was also played by other currencies including, in particular, the pound sterling. It should be noted that the Bretton Woods rules did not match the conditions in the world economy which emerged after World War II. The main areas of criticism concerned such assumptions as the maintenance of an official fixed price for gold, or a too narrowly interpreter postulate for the stability of the exchange rate. On the other hand, it should be noted that the introduction of the stability of exchange rates and the abolition of restrictions on payments were fundamentally sound decisions. They led in fact to the minimisation of a risk inherent in international trade and its rapid growth. One should also emphasise the fact that from the very beginning, in the international gold based monetary system there was an internal contradiction (paradox), which eventually led to its collapse. This was namely the fact that the growth in world trade created a growing demand for international liquidity. This was tantamount to a necessity to maintain a permanent balance of payments deficit in respect of the country whose currency was considered the key currency. At the same time, the growing volume of the US currency resulted in an increasing crisis of confidence in the dollar.

scholarly journals The Renminbi Exchange Rate Reform and Its Implications for Asian Markets

2016 ◽  
Vol 02 (04) ◽  
pp. 485-506 ◽  
Author(s):  
Takamoto Suzuki
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Emerging Economies ◽  
The United States ◽  
Economic Policies ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Special Drawing ◽  
The Stability ◽  
The U.S

Up until now, the Renminbi (RMB) reform has been progressing gradually. With the RMB becoming a Special Drawing Right (SDR) component currency, China’s monetary policies will exert significant influence on the international marketplace. The year 2014 witnessed the weakening of the RMB against the U.S. dollar, yet thanks to China’s prudent economic policies, the RMB stopped depreciating further and remained quite stable for the first half of 2015, which benefited not only China itself, but also the United States, Japan, and other Asian economies. Asian markets used to be strongly influenced by the U.S. monetary policy and the performance of the U.S. dollar. However, since the RMB devaluation against U.S. dollar in the summer of 2015, Asian markets have been inclined to move in accordance with the market information from China rather than that from the United States. Although the RMB is not a currency like the euro that has been adopted by a number of countries, it can still exert great impacts on emerging economies in the world. For the RMB to take hold globally, improved fundamentals in emerging economies, an easing in the influence of the RMB-USD exchange rate, and a healthy financial system in China are all necessary. Meanwhile, both China and the United States need to enhance their coordination on macroeconomic policies and guarantee the stability of RMB-USD exchange rate.

Dollar’s triumph in Bretton Woods: how was it done?

2015 ◽  
pp. 58-72
Author(s):  
O. Butorina
Keyword(s):  
United States ◽  
Historical Data ◽  
Financial System ◽  
The United States ◽  
Economic Power ◽  
Bretton Woods ◽  
Fiat Money ◽  
International Financial System ◽  
Dollar Standard ◽  
The U.S

The increased economic power of the United States and their enormous golden reserves are the main reasons used by economists to explain why the Bretton Woods conference of 1944 put the dollar in the centre of a new international financial system. However, it is not clear if these conditions were sufficient for the introduction of a gold (de facto dollar) standard and excluded any other type of international financial order. The study of historical data reveals an effective diplomatic maneuver conducted by the U.S. administration with an aim to prevent a global transit to fiat money, to keep the importance of gold and to build a strictly hierarchical international financial system.

China versus the United States: IMS Meets IPS

2019 ◽  
Vol 109 ◽  
pp. 476-481
Author(s):  
Emmanuel Farhi ◽  
Matteo Maggiori
Keyword(s):  
United States ◽  
International Monetary System ◽  
The United States ◽  
Status Quo ◽  
Reserve Currency ◽  
Monetary System ◽  
Abrupt Shift ◽  
International Price

Currently both the International Monetary System (IMS) and the International Price Systems (IPS) are dominated by the United States. The emergence of China, both as reserve currency and as a currency of invoicing, is likely to disrupt this status quo. We provide a framework to understand the forces that will shape this transition and identify sources of instability. We highlight the risk of an abrupt shift triggered by a run on the dollar.

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