scholarly journals Financial crisis and changes in the international monetary system. Implications for the euro

Equilibrium ◽  
2010 ◽  
Vol 5 (2) ◽  
pp. 9-19
Author(s):  
Agata Osińska ◽  
Grzegorz Tchorek
Keyword(s):  
Financial Crisis ◽  
Euro Area ◽  
Important Implication ◽  
International Monetary System ◽  
International Currency ◽  
Monetary System ◽  
International Money ◽  
The Status ◽  
The U.S

Having an international currency brings some benefits but also important obstacles. Undoubtedly it is positive to have international money but the process of achieving the status of global money may lead to some costs connected with appreciation of the euro. The main goal of this article is to show that one of the probable scenarios of the post –crisis adjustment in the international monetary system is the risk of the euro overvaluation. It can be a result of diminishing role of the U.S. economy and growing role of the euro as an international currency. Paradoxically, thanks to its success, the euro can be exposed to the overvaluation with important implication for the euro area countries as well as candidates countries.

International monetary fund after the financial crises of the 1990s

2001 ◽  
Vol 10 (1) ◽  
Author(s):  
Jiří Jonáš
Keyword(s):  
Financial Crisis ◽  
International Monetary Fund ◽  
Financial Crises ◽  
International Monetary System ◽  
Proper Role ◽  
Monetary System ◽  
Policy Strategies ◽  
The International Monetary Fund ◽  
The Imf

In this article, I would first discuss briefly what we know about the causes of the recent financial crises, and whether the International Monetary Fund (IMF) could have done more to prevent them. I will explain what policy strategies the IMF recommended to resolve these crises, why it recommended these policies, and to what extent is the criticism of these recommendations justified. In the second part, I will discuss the lessons which the IMF has drawn from these crises. I will explain how the experience of recent years has changed the thinking about the proper role of the IMF in supporting stable international monetary system. I will focus on two broad areas of changes in the activity of the IMF. First, on measures that are being taken to make the repetition of financial crises less likely; second, on measures to be applied if the prevention fails and if a financial crisis strikes again.

scholarly journals THE IMPACT OF THE RENMINBI INTERNATIONALIZATION ON THE GLOBAL MONETARY ORDER

2019 ◽  
Vol 1 (2) ◽  
pp. 13-30
Author(s):  
Katarzyna Twarowska
Keyword(s):  
Foreign Exchange ◽  
International Monetary System ◽  
International Currency ◽  
Monetary System ◽  
International Money ◽  
The Us ◽  
Us Dollar ◽  
The Stability ◽  
The Impact ◽  
Research Analysis

Background and the purpose: The Chinese economy is the fastest growing and changing economy in the modern world. The importance of the renminbi as an international currency is not relevant to China's economic potential and role in the global economy, however, many scientific studies indicate that the position of that currency in the functions of international money will become stronger in the future. This encouraged the author to assess the consequences of the renminbi internationalisation, in particular the impact on the stability of the international monetary system. An additional aim of the paper is to present the possible scenarios for reform of the international monetary system and assess whether the Chinese currency has a chance to become a global currency. Methods: The assessment of the renminbi’s role in global foreign exchange relations was carried out by analysing the use of Chinese currency in the main functions of international money in official sector (reserve currency, intervention currency, anchor currency) and private sector (investment currency, vehicle currency in international trade and on the foreign exchange market, invoicing and quotation currency) using the Cohen matrix. The author also assessed the benefits for the stability of the international monetary system, resulting from the transition from a system based on the dominance of the US dollar to a multi-currency system, including the renminbi. The study included theoretical research (analysis of the literature and research reports) and empirical research (analysis of statistical data). Results and conclusions: The author confirmed the research hypothesis: An increase in the use of renminbi in the functions of international currency will increase the stability of the international monetary system by reducing the dependence of this system on the single currency, which is the US dollar.

scholarly journals The influence of economic crisis on the international position of the euro

2014 ◽  
pp. 51-70
Author(s):  
Izabela Zawiślińska
Keyword(s):  
Economic Crisis ◽  
Euro Area ◽  
International Monetary System ◽  
Real Economy ◽  
International Context ◽  
International Currency ◽  
Monetary System ◽  
The Us ◽  
Us Dollar ◽  
The Right

The international position of a currency is directly determined by the scale and manner of fulfilment of classic currency functions in the international context. Creation of the Economic and Monetary Union and the introduction of a new currency (euro) – even though the decision was strictly political – was well-received by entities of contemporary international economy, including its main participants and the players on the international currency market. The reason for such a reception was the potential of the economies in the euro area, and also structural conditions and expectations for creation of an international currency that was to be a real alternative to the US dollar. The possibility of diversification in the investment and reserve spheres as well as in reference, intervention, transfer and invoicing spheres was considered as a step in the right direction to limiting the domination of the US dollar on the market. Notwithstanding the increasing problems in euro area in the fiscal sphere and the real economy, particularly with the job market, one may agree that the latest economic crisis did not change the bipolar character of the international monetary system still based on the US dollar and the euro. However, it needs to be stressed that the euro remains rather a regional than a global currency.

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.

scholarly journals Money Decentralization under Direct Democracy Procedures. The Case of Classical Athens

2021 ◽  
Vol 14 (1) ◽  
pp. 30
Author(s):  
Emmanouil-Marios L. Economou ◽  
Nicholas C. Kyriazis ◽  
Nikolaos A. Kyriazis
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Direct Democracy ◽  
Hellenistic Period ◽  
International Currency ◽  
Monetary System ◽  
Mediterranean World ◽  
The Stability ◽  
City State

By analyzing the case of Athens during the Classical period (508-323 BCE) the main thesis of this paper is that under direct democracy procedures and the related institutional setup, a monetary system without a Central Bank may function relatively well. We focus on the following issues: (i) Τhe procedures of currency issuing in the Athenian city-state, (ii) why the Athenian drachma become the leading international currency in the Mediterranean world (iii) how and towards which targets monetary policy without a Central Bank was possible (iv) defining the targets of monetary policy and the mechanisms for its implementation (v) the role of money in the economy (vi) the issue of deficit spending (vii) the reasons of the replacement of the Athenian drachma as a leading currency by others from the Hellenistic period onwards (viii) the correlation of our findings regarding the decentralized character of monetary policy in Classical Athens to today’s realities, such as the issue of cryptocurrencies. Our analysis shows that monetary policy without a Central Bank was possible, with its foremost aim being the stability of the currency (mainly, silver coins) in order to enhance trust in it and so, make it an international currency which could outcompete other currencies. Since there was no Central Bank like today, monetary policy decisions were taken by the popular assembly of citizens in combination with the market forces themselves.

scholarly journals Alternative international currencies

2012 ◽  
Vol 57 (194) ◽  
pp. 31-39
Author(s):  
Vladimirovna Rozhentsova
Keyword(s):  
International Monetary System ◽  
International Currency ◽  
The Past ◽  
Monetary System ◽  
International Currencies ◽  
The World ◽  
Circulation Mechanism ◽  
The Creation

The modern international monetary system has a number of flaws and therefore needs cardinal change. Hence, economists from all over the world are suggesting alternative international currencies that would make the international monetary system more efficient. However, it is essential when approaching the creation of a new international currency to analyze and take into account the experience of all the past international currencies. Therefore this paper begins with an exploration of the drawbacks of each of the past and present international currencies. Drawing on this analysis a justification will be made for the necessity of introducing a new international currency, pointing to the requirements it should meet. Further on, this paper proposes an alternative theoretically possible variant of the international currency, with a fixed value relative to a commodity basket. An abstract example is used to demonstrate its composition and circulation mechanism.

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.

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