Short-Term Capital Flows, Exchange Rate Expectation and Currency Internationalization: Evidence from China

This paper intended to employ a portfolio approach to assess the effect of exchange rate expectation on Chinese RMB internationalization and empirically test the interactive effects among short-term capital flows, RMB appreciation expectation and the internationalization process using a VAR model with monthly data ranging from February 2004 to December 2020. The results suggest that RMB exchange rate appreciation could lead to an increase in the foreign demand for RMB and RMB denominated assets, while RMB internationalization would attract more short-term capital inflow due to the reduced transaction costs. The empirical evidence from the VAR model estimation confirms the finding that expected RMB appreciation induces short-term capital inflow and promotes RMB internationalization. The robustness checks confirm the evidence. The results have important policy implication for RMB internationalization and for maintaining a sound and stable financial system.

Translation as Charitable Currency: Internationalization Through International Alumni Giving

As higher education continues to internationalize, the United States higher education system remains a predominantly English-speaking entity. This research-in-progress will examine how United States institutions of higher education engage with English-language learning international alumni to explore how these alumni are asked to give back to their alma mater. I hypothesize that many institutions of higher educaiton may be perpetuing academic capitalism by viewing international alumni as sources of financial support and not as sources of rich linguistic capital that could be leveraged to further diversify the institution and facilitate equitable access to higher education.

Measuring Currency Power from 2005 to 2018

The main research goal of this paper is to empirically assess the state of US currency power relative to its main rivals in the period between 2005 and 2018. The most novel aspect of our inquiry is the design of three new composite indices called: Monetary Capability Index (MCI), Quality of Governance Index (QGI) and Currency Internationalization Index (CII). We argue that those indices are indispensable in an attempt to empirically measure the concept of currency power, both its underlying material and non-material resources, as well as the degree of their effective exploatation. Based on the conducted analysis it is visible that material resources are a necessary but not sufficient condition to wield and exert currency power which we proxy by currency internationalization. In that regard quality of governance remains indispensable to this effort. Our measurement shows that US currency power remains unshattered by the global financial crisis (GFC) and US dollar is still placed firmly at the top of international monetary and credit hierarchy. In spite of dangers emanating from Trump’s erratic policy, US rivals either face weakening of their currency power in terms of their monetary capability or still lag far behind the US in terms of their quality of governance.

The Impact of "Belt and Road" Initiative on the Internationalization of Chinese Renminbi

President Xi proposed building the Silk Road Economic Belt and 21st-Century Maritime Silk Road, which became known as the “Belt and Road” Initiative. In 2016, the RMB (Chinese currency) officially joined the SDR (Special Drawing Rights), and the RMB’s entry is the integration of the Chinese economy into the global financial system. The internationalization of the RMB is the need for the development of global economic integration and the development of China’s international trade. This “initiative” provides strong support for the internationalization of the RMB. Besides, how to achieve balance in maintaining the country’s economic stability and promoting currency internationalization has always been a difficult issue faced by Chinese monetary authorities when the issue of “big country with small currency” presented. Based on the theory of internationalization of currency, this paper discusses the mutual promotion between RMB's internationalization and the "Belt and Road" initiative, the role of the "Belt and Road" Initiative as a driving force to RMB’s Internationalization.

The internationalization of local currencies of emerging countries: the experience of the Mexican peso and the Chinese renminbi

<p>Globalization introduced private and structural endogenous money (private monetary debts) as the main instrument of financial capital mobilization in the international financial system. A main consequence of this feature was the internalization of emerging economies currencies unfolding two successful experiences: the foreign exchange transactions related to the Mexican peso and the Chinese renminbi. The former currency internationalized as a result of the institutional changes unfolded in the Mexican economy and it’s insertion to the North American region (NAFTA); while the latter stemmed from a government strategy to influence the worldwide economy as a result of its accelerated economic growth and increased importance in the world economy. In this paper are discussed three main themes: the way in which emerging economies currencies internationalized; the insertion of these economies in the international market, and the divergent developments of successful currency internationalization.</p>