Concluding Thoughts

2018 ◽  
Author(s):  
Atish R. Ghosh ◽  
Jonathan D. Ostry ◽  
Mahvash S. Qureshi
Keyword(s):  
Emerging Markets ◽  
International Monetary System ◽  
Policy Makers ◽  
Monetary System ◽  
Trade Offs ◽  
Liquidity Insurance ◽  
Benefit Cost ◽  
Global Monetary System ◽  
Opening Up

This concluding chapter argues that the policy makers' vade mecum laid out in the previous chapter raises broader issues for the global monetary system. Notwithstanding the fact that some of the emerging markets may have liberalized their capital accounts prematurely, it questions whether emerging markets have further to gain from opening up, or indeed whether they would not be better off retaining restrictions on at least the riskiest forms of foreign liabilities and transactions. This is particularly pertinent since most of these countries do not enjoy the liquidity insurance provided by swap facilities let alone the reserve currency status. They are forced to self-insure through reserve accumulation, which is costly both to the country and to the international monetary system. Alternative forms of insurance could arguably yield favorable benefit–cost trade-offs, particularly if they result in a safer mix of flows that makes economies less prone to risks from changes in global push factors.

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.

Introduction

2020 ◽  
pp. 1-20
Author(s):  
Michael Schiltz
Keyword(s):  
Transaction Cost ◽  
Sovereign Debt ◽  
Network Effects ◽  
International Monetary System ◽  
Late Nineteenth Century ◽  
Financial Policy ◽  
Policy Makers ◽  
Monetary System ◽  
Long Run ◽  
Currency Competition

This chapter lays out the conceptual framework needed to grasp the challenges facing exchange bankers in late nineteenth-century Asia. It borrows from the transaction cost literature underlying the study of the structure of the international monetary system; and it subscribes to the notion that such structure is the product of international currency competition. In the historical literature, applications of these insights are surprisingly scarce. Yet it is demonstrated that, by (1) settling on the existence of a distinction between ‘center’ and ‘periphery’ and (2) the existence of ‘network effects’, the transaction cost approach may explain the persistence of monetary arrangements in the long run. Remarkably, seemingly ‘retreating’ currencies retain a degree of superiority that would not be warranted in case network effects were absent; vice versa, non-liquid currencies have only a very small chance at climbing the ladder of currency prestige—they are structurally disadvantaged. It is argued that the distinction between center and periphery is real, not just analytical, and has had tangible implications for monetary and financial policy makers in the fields of sovereign debt and trade finance.

scholarly journals Organic global cryptocurrency: towards a stable international monetary system that is closer to Maqāṣid Sharīʿah

2020 ◽  
Vol 28 (1) ◽  
pp. 63-82
Author(s):  
Abdurrahman Arum Rahman
Keyword(s):  
Interest Rates ◽  
Design Theory ◽  
Design Methodology ◽  
International Monetary System ◽  
Monetary Model ◽  
Content Type ◽  
Monetary System ◽  
International Money ◽  
Global Monetary System ◽  
Time Move

PurposeThe most prominent and persistent problems of our global monetary system are instability and imbalances. We propose an international monetary model to solve these problems while at the same time move the model closer to Maqāṣid Sharīʿah (objectives of Sharīʿah). We name this an organic global monetary model or abbreviated as OGM. OGM is an international monetary model directly built on the national monetary system of each member country so that the two can co-exist.Design/methodology/approachModel design, theory and literature.FindingsThe model can eliminate interest rates at the central bank level, create non-tradable international money, and make a more stable international monetary system.Originality/valueOriginal.

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 Emerging Markets and the Global Monetary System: The Challenge of Rising Inflation

2008 ◽  
Vol 43 (5) ◽  
pp. 268-276
Author(s):  
Hermann Remsperger ◽  
Adalbert Winkler
Keyword(s):  
Emerging Markets ◽  
Monetary System ◽  
Global Monetary System

Crisis Diplomacy, Interdependence, And The Politics of International Economic Relations

1972 ◽  
Vol 24 (S1) ◽  
pp. 123-150 ◽  
Author(s):  
Edward L. Morse
Keyword(s):  
Trade Liberalization ◽  
International Monetary System ◽  
Basic Structure ◽  
The Political ◽  
Trade Policies ◽  
Policy Makers ◽  
Economic Relations ◽  
The Past ◽  
Monetary System ◽  
International Economic Relations

During the past decade policy makers and academic observers have become increasingly aware of the political importance of economic relations, especially among the advanced industrialized states. Some of this awareness came precipitously when monetary crises threatened not only individual currencies such as sterling, the franc, or the dollar, but also the basic structure of the international monetary system. Some of this awareness was more incremental, as with the growing fear that neomercantilist trade policies might result in a reversal of the postwar policies of trade liberalization pursued by the Western industrialized states.

scholarly journals The Challenges of Reforming the International Monetary System in the Post COVID-19 World

2020 ◽  
Vol 15 (3) ◽  
pp. 61-73
Author(s):  
Mărginean Silvia Cristina ◽  
Orăştean Ramona
Keyword(s):  
International Monetary System ◽  
Decisive Role ◽  
Future Trends ◽  
Policy Makers ◽  
Good Insight ◽  
Monetary System ◽  
System Calls ◽  
The Us ◽  
Us Dollar ◽  
Insight Into

Abstract The paper analyzes if the international monetary system calls for reform and whether China and the renminbi will play a decisive role in the post COVID-19 world. It also evaluates the main scenarios and trends that is being discussed since the global crisis – selecting the relevant authors, journals, institutions and opinions – examines present conditions and tries to extrapolate into future trends. Opting for a nontechnical approach, the article could be a good insight into the international monetary system, for academics, non-experts and policy makers. The paper concludes that if the 2008 crisis has induced the growth of the China role in the international monetary governance and the increase of the renminbi internationalization, the COVID-19 pandemic and post crisis reconstruction could generate a deeper reform of the international monetary system, in which the Chinese currency will strengthen its global position alongside the US dollar and the euro.

CRYPTOCURRENCY PHENOMENON IN THE INTERNATIONAL MONETARY SYSTEM

2017 ◽  
pp. 95-100
Author(s):  
Артур Анатолійович Василенко
Keyword(s):  
World Economy ◽  
International Monetary System ◽  
State University ◽  
Electronic Money ◽  
Monetary System ◽  
Current Trends ◽  
The World ◽  
Post Graduate Student ◽  
The One ◽  
Xix Century

UDC 336.74   Vasylenko Artur, post-graduate student. Mariupol State University. Cryptocurrency Phenomenon in the International Monetary System. The main prerequisites of cryptocurrency emergence in the international monetary system in terms of regionalization of the world economy are defined in the article. Determination of «cryptocurrency» category was analysed from the point of two main approaches to its treatment: on the one hand cryptocurrency is admitted to be the currency equally to the sovereign currency, and on the other hand it is considered as an unrecognized virtual asset. The main consequences which arise in case of widespread use of crypto currency for the country and for the parties that agreed to use cryptocurrency were analysed and systematized. On the basis of the research, given the current trends in the world economy, the author put forward and substantiated the hypothesis to classify the phenomenon of cryptocurrency as the effects of a famous philosophical «Negation of negation law» formulated by G. Hegel at the beginning of the XIX century.   Keywords: cryptocurrency, material money, electronic money, digital currency, regional currency integration, blockchain, mining, capitalization, «Negation of negation law».

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.

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