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Renminbi in the future international monetary system

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  • Yeh, Kuo-chun

Abstract

The dollar, euro and yen still dominate the international financial system after the global recession. However, the renminbi is expected to be the next international currency with the continued growth of China. Will a forthcoming multiple reserve currency system be an origin of instability? This study analyzes whether or not a prospective G3 plus renminbi cooperative mechanism can be sustained. A basic assumption is that the four countries can solely use or coordinate their policies without losing their national currencies. We conclude that a multi-currency cooperative mechanism is hardly feasible if the welfare of the individual countries is considered.

Suggested Citation

  • Yeh, Kuo-chun, 2012. "Renminbi in the future international monetary system," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 106-114.
    • Handle: RePEc:eee:reveco:v:21:y:2012:i:1:p:106-114
    DOI: 10.1016/j.iref.2011.04.003
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    1. Yeh, Kuo-chun & Ho, Tai-kuang & Lin, Ya-chi, 2025. "Measuring the onshore and offshore RMB markets: A test for CNY, CNH and CNT," Journal of Asian Economics, Elsevier, vol. 100(C).
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    3. An, Jiyoun & Kim, Hyo Sang & Park, Bokyeong, 2024. "Do China's policy measures for RMB internationalization foster currency co-movements?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1033-1050.

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    Keywords

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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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