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International Currencies Past, Present and Future: Two Views from Economic History

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  • Barry Eichengreen

    () (University of California, Berkeley)

Abstract

This paper contrasts two views of international currency status: an "old view" in which network increasing returns are sufficiently strong that one currency dominates international markets at any point in time, versus a "new view" in which networks are open and several international currencies can coexist. It marshals historical evidence in favor of the "new view" and suggests that several national currencies, most plausibly the U.S. dollar and Chinese renminbi, are likely to share this international currency role in the not-too-distant future.

Suggested Citation

  • Barry Eichengreen, 2014. "International Currencies Past, Present and Future: Two Views from Economic History," Working Papers 2014-31, Economic Research Institute, Bank of Korea.
  • Handle: RePEc:bok:wpaper:1431
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    References listed on IDEAS

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    Cited by:

    1. Miaojie Yu, 2020. "China-US Trade War and Trade Talk," Springer Books, Springer, number 978-981-15-3785-1, April.
    2. Fan Zhang & Miaojie Yu & Jiantuo Yu & Yang Jin, 2017. "The Effect of RMB Internationalization on Belt and Road Initiative: Evidence from Bilateral Swap Agreements," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(12), pages 2845-2857, December.

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    More about this item

    Keywords

    Globalization; Inflation Dynamics; Global Slack Hypothesis; Openness; Inflation Expectations; Small Open Economy DSGE Model; Korea;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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