Benjamin J. Cohen
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780226587691
- eISBN:
- 9780226587868
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226587868.001.0001
- Subject:
- Political Science, International Relations and Politics
What is the role of currency statecraft in world politics? When a national money gains international appeal, the power resources of the issuing country are augmented. Currency statecraft is about ...
More
What is the role of currency statecraft in world politics? When a national money gains international appeal, the power resources of the issuing country are augmented. Currency statecraft is about what the country chooses to do – or not do – with its currency power. This book begins with the premise that every international money goes through a life cycle, from youth to maturity to (eventually) decline. At each stage, the supplier has three choices: to be pro-active in favor of international use, to resist internationalization, or to remain neutral. The central argument of the book is that beyond purely material factors, currency statecraft is motivated by cognitive considerations having to do with a society’s underlying sense of identity. In particular, policy is shaped by the extent of a state’s geopolitical ambition: how driven it is to build or sustain a prominent place in the community of nations. Extensive study of experience in the modern era demonstrates the key role played by the presence or absence of geopolitical ambition in the rise of international currencies like the West German Deutsche mark or Japanese yen, the long-standing dominance of the US dollar, and the decline of the British pound. The book concludes with a look at the growing rivalry between America’s greenback and the emergent renminbi of China – the central drama on the world currency stage today. Analysis suggests that a new era of open and costly monetary hostilities may be approaching.Less
What is the role of currency statecraft in world politics? When a national money gains international appeal, the power resources of the issuing country are augmented. Currency statecraft is about what the country chooses to do – or not do – with its currency power. This book begins with the premise that every international money goes through a life cycle, from youth to maturity to (eventually) decline. At each stage, the supplier has three choices: to be pro-active in favor of international use, to resist internationalization, or to remain neutral. The central argument of the book is that beyond purely material factors, currency statecraft is motivated by cognitive considerations having to do with a society’s underlying sense of identity. In particular, policy is shaped by the extent of a state’s geopolitical ambition: how driven it is to build or sustain a prominent place in the community of nations. Extensive study of experience in the modern era demonstrates the key role played by the presence or absence of geopolitical ambition in the rise of international currencies like the West German Deutsche mark or Japanese yen, the long-standing dominance of the US dollar, and the decline of the British pound. The book concludes with a look at the growing rivalry between America’s greenback and the emergent renminbi of China – the central drama on the world currency stage today. Analysis suggests that a new era of open and costly monetary hostilities may be approaching.
Guonan Ma and Robert N. McCauley
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199235889
- eISBN:
- 9780191717109
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199235889.003.0012
- Subject:
- Economics and Finance, South and East Asia
This chapter examines both price and flow evidence to determine how effective China's capital controls have been in the past and remain at present. Section 12.2 describes the increasing openness of ...
More
This chapter examines both price and flow evidence to determine how effective China's capital controls have been in the past and remain at present. Section 12.2 describes the increasing openness of the Chinese economy to cross-border flows as background for both price and flow analysis. Section 12.3 reviews and updates the price evidence that capital controls are still binding. Section 12.4 examines the gap between renminbi and US dollar short-term interest rates during the period of de facto dollar pegging of the renminbi between the mid-1990s and July 2005, arguing that these rates converged soon after China's inflation had fallen from double-digit levels in the early 1990s. Section 12.5 demonstrates the responsiveness of various measures of capital flows to interest-rate differentials and exchange-rate expectations. Section 12.6 discusses challenges to China's capital account liberalization.Less
This chapter examines both price and flow evidence to determine how effective China's capital controls have been in the past and remain at present. Section 12.2 describes the increasing openness of the Chinese economy to cross-border flows as background for both price and flow analysis. Section 12.3 reviews and updates the price evidence that capital controls are still binding. Section 12.4 examines the gap between renminbi and US dollar short-term interest rates during the period of de facto dollar pegging of the renminbi between the mid-1990s and July 2005, arguing that these rates converged soon after China's inflation had fallen from double-digit levels in the early 1990s. Section 12.5 demonstrates the responsiveness of various measures of capital flows to interest-rate differentials and exchange-rate expectations. Section 12.6 discusses challenges to China's capital account liberalization.
Eswar S. Prasad
- Published in print:
- 2016
- Published Online:
- October 2016
- ISBN:
- 9780190631055
- eISBN:
- 9780190631086
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190631055.001.0001
- Subject:
- Economics and Finance, International
China’s currency, the renminbi (RMB), has taken the world by storm. The RMB is well on its way to becoming a significant international currency, one that is used widely in international trade and ...
More
China’s currency, the renminbi (RMB), has taken the world by storm. The RMB is well on its way to becoming a significant international currency, one that is used widely in international trade and finance. This book documents the RMB’s impressive rise, with China successfully adopting a unique playbook for promoting its currency. China’s growing economic might, expanding international influence, and the rise of its currency are all intricately connected. The book documents how China’s government has tied these goals together, enabling faster progress toward each of them. But there are many pitfalls ahead, both for China’s economy and its currency. If China plays its cards right, with reforms that put its economy and financial markets on the right track, the RMB is going to become an important reserve currency that could rival some of the traditional reserve currencies such as the euro and the Japanese yen. But this book argues that there are limits to the RMB’s ascendance—the hype about its inevitable rise to global dominance is overblown. The Chinese leadership’s apparent commitment to financial sector and other market-oriented reforms—coupled with unambiguous repudiation of political, legal, and institutional reforms—sets the RMB on a clear course. It will attain the status of a reserve currency over time but has essentially given up its claim of being seen as a safe haven currency, one that investors turn to for safety. The RMB will erode but not seriously challenge the U.S. dollar’s dominance in international finance.Less
China’s currency, the renminbi (RMB), has taken the world by storm. The RMB is well on its way to becoming a significant international currency, one that is used widely in international trade and finance. This book documents the RMB’s impressive rise, with China successfully adopting a unique playbook for promoting its currency. China’s growing economic might, expanding international influence, and the rise of its currency are all intricately connected. The book documents how China’s government has tied these goals together, enabling faster progress toward each of them. But there are many pitfalls ahead, both for China’s economy and its currency. If China plays its cards right, with reforms that put its economy and financial markets on the right track, the RMB is going to become an important reserve currency that could rival some of the traditional reserve currencies such as the euro and the Japanese yen. But this book argues that there are limits to the RMB’s ascendance—the hype about its inevitable rise to global dominance is overblown. The Chinese leadership’s apparent commitment to financial sector and other market-oriented reforms—coupled with unambiguous repudiation of political, legal, and institutional reforms—sets the RMB on a clear course. It will attain the status of a reserve currency over time but has essentially given up its claim of being seen as a safe haven currency, one that investors turn to for safety. The RMB will erode but not seriously challenge the U.S. dollar’s dominance in international finance.
Benjamin J. Cohen
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780226587691
- eISBN:
- 9780226587868
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226587868.003.0005
- Subject:
- Political Science, International Relations and Politics
The earliest stage in the life cycle of an international currency is youth – the vital formative years when a national money first starts to show signs of acceptance for international purposes. The ...
More
The earliest stage in the life cycle of an international currency is youth – the vital formative years when a national money first starts to show signs of acceptance for international purposes. The issuing authorities, in response, have a choice among three strategic options: prevention, promotion, or permission. The issuer may seek to promote foreign acceptance; conversely, it may wish to take action to prevent wider use; or, less decisively, it may elect simply to permit internationalization. Recent history provides examples of all three choices, with outcomes that have varied considerably. The prevention option is illustrated by the early West German and Japanese efforts to resist internationalization of their currencies, respectively, the Deutsche mark and yen. Examples of a promotion strategy include both a short-lived experiment by Japan in the 1990s and China’s more recent campaign for its renminbi, which is still ongoing. The permission option is represented by Europe’s “non-policy” response to the rise of the euro after the currency’s birth in 1999. Taken together, these episodes form a remarkably consistent pattern. They all illustrate the importance of geopolitical ambition – its presence or absence – as a motivating force for currency statecraft.Less
The earliest stage in the life cycle of an international currency is youth – the vital formative years when a national money first starts to show signs of acceptance for international purposes. The issuing authorities, in response, have a choice among three strategic options: prevention, promotion, or permission. The issuer may seek to promote foreign acceptance; conversely, it may wish to take action to prevent wider use; or, less decisively, it may elect simply to permit internationalization. Recent history provides examples of all three choices, with outcomes that have varied considerably. The prevention option is illustrated by the early West German and Japanese efforts to resist internationalization of their currencies, respectively, the Deutsche mark and yen. Examples of a promotion strategy include both a short-lived experiment by Japan in the 1990s and China’s more recent campaign for its renminbi, which is still ongoing. The permission option is represented by Europe’s “non-policy” response to the rise of the euro after the currency’s birth in 1999. Taken together, these episodes form a remarkably consistent pattern. They all illustrate the importance of geopolitical ambition – its presence or absence – as a motivating force for currency statecraft.
Benjamin J. Cohen
- Published in print:
- 2018
- Published Online:
- May 2019
- ISBN:
- 9780226587691
- eISBN:
- 9780226587868
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226587868.003.0008
- Subject:
- Political Science, International Relations and Politics
What happens when currency statecrafts collide? Although the potential for policy conflict between monetary rivals would appear, in principle, to be great, the modern era has actually seen remarkably ...
More
What happens when currency statecrafts collide? Although the potential for policy conflict between monetary rivals would appear, in principle, to be great, the modern era has actually seen remarkably little overt warfare between international moneys. With the emergence of China’s renminbi, however, we have an exception – a unique and potentially historic confrontation between a rising monetary power, China, seemingly committed to do all it can to move currency preferences in its favor, versus a long-time incumbent, the United States, that is unlikely to surrender its historical privileges without a fight. In terms of capabilities, it would seem, the advantage is all to the greenback, which is backed by power resources that – so far, at least – greatly outstrip anything available to the renminbi. But in terms of statecraft, Beijing has shown a determined and nimble strategic sensibility that is well beyond anything we have yet to see come out of Washington. Three questions are addressed in this chapter. First, why is the dollar-renminbi confrontation so exceptional? Second, how is the confrontation likely to turn out? And third, what are the implications for possible collisions of currency statecrafts in the future?Less
What happens when currency statecrafts collide? Although the potential for policy conflict between monetary rivals would appear, in principle, to be great, the modern era has actually seen remarkably little overt warfare between international moneys. With the emergence of China’s renminbi, however, we have an exception – a unique and potentially historic confrontation between a rising monetary power, China, seemingly committed to do all it can to move currency preferences in its favor, versus a long-time incumbent, the United States, that is unlikely to surrender its historical privileges without a fight. In terms of capabilities, it would seem, the advantage is all to the greenback, which is backed by power resources that – so far, at least – greatly outstrip anything available to the renminbi. But in terms of statecraft, Beijing has shown a determined and nimble strategic sensibility that is well beyond anything we have yet to see come out of Washington. Three questions are addressed in this chapter. First, why is the dollar-renminbi confrontation so exceptional? Second, how is the confrontation likely to turn out? And third, what are the implications for possible collisions of currency statecrafts in the future?
Anita Anand (ed.)
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198777625
- eISBN:
- 9780191823183
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198777625.001.0001
- Subject:
- Law, Company and Commercial Law
Following the recent financial crisis, regulators have been preoccupied with the concept of systemic risk in financial markets, believing that such risk could cause the markets that they oversee to ...
More
Following the recent financial crisis, regulators have been preoccupied with the concept of systemic risk in financial markets, believing that such risk could cause the markets that they oversee to implode. At the same time, they have demonstrated a certain inability to develop and implement comprehensive policies to address systemic risk. This inability is due not only to the indeterminacy inherent in the term ‘systemic risk’ but also to existing institutional structures which, because of their existing legal mandates, ultimately make it difficult to monitor and regulate systemic risk across an entire economic system. Bringing together leading figures in the field of financial regulation, this book explores the related concepts of systemic risk and institutional design of financial markets, responding to a number of questions: In terms of systemic risk, what precisely is the problem and what can be done about it? How should systemic risk be regulated? What should be the role of the central bank, banking authorities, and securities regulators? Should countries implement a macroprudential regulator? If not, how is macroprudential regulation to be addressed within their respective legislative schemes? What policy mechanisms can be employed when developing regulation relating to financial markets? A significant and timely examination of one of the most intractable challenges is posed to financial regulation.Less
Following the recent financial crisis, regulators have been preoccupied with the concept of systemic risk in financial markets, believing that such risk could cause the markets that they oversee to implode. At the same time, they have demonstrated a certain inability to develop and implement comprehensive policies to address systemic risk. This inability is due not only to the indeterminacy inherent in the term ‘systemic risk’ but also to existing institutional structures which, because of their existing legal mandates, ultimately make it difficult to monitor and regulate systemic risk across an entire economic system. Bringing together leading figures in the field of financial regulation, this book explores the related concepts of systemic risk and institutional design of financial markets, responding to a number of questions: In terms of systemic risk, what precisely is the problem and what can be done about it? How should systemic risk be regulated? What should be the role of the central bank, banking authorities, and securities regulators? Should countries implement a macroprudential regulator? If not, how is macroprudential regulation to be addressed within their respective legislative schemes? What policy mechanisms can be employed when developing regulation relating to financial markets? A significant and timely examination of one of the most intractable challenges is posed to financial regulation.
Daniel W. Drezner
- Published in print:
- 2017
- Published Online:
- January 2018
- ISBN:
- 9781501709180
- eISBN:
- 9781501712777
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501709180.003.0004
- Subject:
- Political Science, Asian Politics
This chapter analyzes the impact of the rise of the Chinese economy on the international economic structure. While looking at the rapid growth of the Chinese economy, analysis reveals that China has ...
More
This chapter analyzes the impact of the rise of the Chinese economy on the international economic structure. While looking at the rapid growth of the Chinese economy, analysis reveals that China has yet to challenge the United States as the anchor of the global financial system: the renminbi remains negligible in international financial transactions. Indeed, since the 2007–8 global financial crisis, the U.S. dollar has expanded its importance relative to the renminbi in global finance. The chapter suggests that the renminbi is far from becoming a significant international reserve currency and that the United States will continue to dominate the regional financial order. In trade relations, however, the chapter establishes the significant importance of the Chinese market for economies throughout East Asia.Less
This chapter analyzes the impact of the rise of the Chinese economy on the international economic structure. While looking at the rapid growth of the Chinese economy, analysis reveals that China has yet to challenge the United States as the anchor of the global financial system: the renminbi remains negligible in international financial transactions. Indeed, since the 2007–8 global financial crisis, the U.S. dollar has expanded its importance relative to the renminbi in global finance. The chapter suggests that the renminbi is far from becoming a significant international reserve currency and that the United States will continue to dominate the regional financial order. In trade relations, however, the chapter establishes the significant importance of the Chinese market for economies throughout East Asia.
Y. Y. Kueh
- Published in print:
- 2012
- Published Online:
- May 2013
- ISBN:
- 9789888083824
- eISBN:
- 9789888180158
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789888083824.003.0006
- Subject:
- History, Political History
This chapter begins by questioning whether the British administration would have been better able to lead Hong Kong through the Asian financial typhoon. In addition to giving a brief account of the ...
More
This chapter begins by questioning whether the British administration would have been better able to lead Hong Kong through the Asian financial typhoon. In addition to giving a brief account of the speculative attacks on the Hong Kong dollar in 1997–98, this chapter looks into whether there are tenable economic factors underlying the international speculations for a renminbi devaluation. Moreover it evaluates the effectiveness of revamping the Currency Board and discusses the impacts on Hong Kong's external trade.Less
This chapter begins by questioning whether the British administration would have been better able to lead Hong Kong through the Asian financial typhoon. In addition to giving a brief account of the speculative attacks on the Hong Kong dollar in 1997–98, this chapter looks into whether there are tenable economic factors underlying the international speculations for a renminbi devaluation. Moreover it evaluates the effectiveness of revamping the Currency Board and discusses the impacts on Hong Kong's external trade.
Eric Helleiner
- Published in print:
- 2014
- Published Online:
- August 2014
- ISBN:
- 9780199973637
- eISBN:
- 9780190203207
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199973637.003.0003
- Subject:
- Political Science, Political Economy
Despite predictions that the dollar’s key currency status would be challenged by the 2008 financial crisis, there has in fact been very little change in the greenback’s international role. ...
More
Despite predictions that the dollar’s key currency status would be challenged by the 2008 financial crisis, there has in fact been very little change in the greenback’s international role. Expectations that the crisis would generate a massive crisis of foreign confidence in the dollar did not pan out; indeed, the dollar appreciated as the crisis intensified because of support from both private investors and foreign governments. The dollar’s international role was also not challenged in any significant way by post-crisis initiatives to strengthen the reserve function of the IMF’s Special Drawing Rights and encourage greater internationalization of other currencies. Rather than undermine the dollar’s status, the 2008 financial crisis provided new insights about the sources of the dollar’s international preeminence.Less
Despite predictions that the dollar’s key currency status would be challenged by the 2008 financial crisis, there has in fact been very little change in the greenback’s international role. Expectations that the crisis would generate a massive crisis of foreign confidence in the dollar did not pan out; indeed, the dollar appreciated as the crisis intensified because of support from both private investors and foreign governments. The dollar’s international role was also not challenged in any significant way by post-crisis initiatives to strengthen the reserve function of the IMF’s Special Drawing Rights and encourage greater internationalization of other currencies. Rather than undermine the dollar’s status, the 2008 financial crisis provided new insights about the sources of the dollar’s international preeminence.
Luc Christiaensen
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199679362
- eISBN:
- 9780191758430
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199679362.003.0017
- Subject:
- Economics and Finance, Development, Growth, and Environmental
China’s success in feeding itself has defied the expectations of many. But, rising agricultural labor costs, increasing competition from imports following renminbi appreciation, and growing ...
More
China’s success in feeding itself has defied the expectations of many. But, rising agricultural labor costs, increasing competition from imports following renminbi appreciation, and growing agro-climatic uncertainty in the face of tightening land and water constraints and rising cereal feed demand for increasingly protein-rich diets are challenging its smallholder and cereal self-sufficiency model. These farm income and food problems could be overcome by a moderate relaxation of the cereal self-sufficiency ambitions (especially for maize) and institutional innovations in the land, labor, and capital markets, keeping smallholder farming commercially viable. These would help maintain sociopolitical stability at home (by containing food price inflation and reducing the rural–urban divide) and abroad (by avoiding sudden entrance into the world food markets).Less
China’s success in feeding itself has defied the expectations of many. But, rising agricultural labor costs, increasing competition from imports following renminbi appreciation, and growing agro-climatic uncertainty in the face of tightening land and water constraints and rising cereal feed demand for increasingly protein-rich diets are challenging its smallholder and cereal self-sufficiency model. These farm income and food problems could be overcome by a moderate relaxation of the cereal self-sufficiency ambitions (especially for maize) and institutional innovations in the land, labor, and capital markets, keeping smallholder farming commercially viable. These would help maintain sociopolitical stability at home (by containing food price inflation and reducing the rural–urban divide) and abroad (by avoiding sudden entrance into the world food markets).
Linda S. Goldberg
- Published in print:
- 2013
- Published Online:
- May 2014
- ISBN:
- 9780262019804
- eISBN:
- 9780262314442
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262019804.003.0011
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter discusses the evolving role of the US dollar in the international monetary architecture. Her analysis is motivated by the concern that the financial crisis that originated in the United ...
More
This chapter discusses the evolving role of the US dollar in the international monetary architecture. Her analysis is motivated by the concern that the financial crisis that originated in the United States in 2007 might have a negative impact on the role of the US currency in world financial markets. However, after reviewing the evidence, Goldberg asserts that the US dollar remains the dominant international currency according to a variety of typical functionalities of money. The US dollar’s prominence thus largely survives the recent market turbulence, as well as the nascent Chinese push of its currency, renminbi, to the international market. Goldberg notes that changes in the US dollar status as an international currency could have negative implications for the US in terms of seignorage returns, funding costs, currency value, shock insulation, and global influence. However, she anticipates the international role of the US is quite stable and does not consider these potential negative impacts on the United States to occur in the foreseeable future.Less
This chapter discusses the evolving role of the US dollar in the international monetary architecture. Her analysis is motivated by the concern that the financial crisis that originated in the United States in 2007 might have a negative impact on the role of the US currency in world financial markets. However, after reviewing the evidence, Goldberg asserts that the US dollar remains the dominant international currency according to a variety of typical functionalities of money. The US dollar’s prominence thus largely survives the recent market turbulence, as well as the nascent Chinese push of its currency, renminbi, to the international market. Goldberg notes that changes in the US dollar status as an international currency could have negative implications for the US in terms of seignorage returns, funding costs, currency value, shock insulation, and global influence. However, she anticipates the international role of the US is quite stable and does not consider these potential negative impacts on the United States to occur in the foreseeable future.
Padma Desai
- Published in print:
- 2011
- Published Online:
- November 2015
- ISBN:
- 9780231157865
- eISBN:
- 9780231527743
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231157865.003.0007
- Subject:
- Economics and Finance, Public and Welfare
This chapter analyzes the relationship between Chinese and U.S. monetary policy. It specifically looks into the nations' partnership during the global financial crisis when both nations were at an ...
More
This chapter analyzes the relationship between Chinese and U.S. monetary policy. It specifically looks into the nations' partnership during the global financial crisis when both nations were at an impasse. The monetary policy of the U.S. Federal Reserve is supported by the saving inflows from China, who invested the country's dollar earnings (from export surpluses) in U.S. Treasury bonds. However, due to the crisis, the U.S. was left with an unsustainable housing bubble, leading to the renminbi, the Chinese currency, to depreciate due to burgeoning export surpluses. Chinese authorities were therefore left to decide on whether or not to appreciate the renminbi. Appreciating it would serve U.S. interests as China would send fewer exports to the U.S. and deprive fewer Americans of their jobs. On the other hand, the Chinese commerce ministry, which is in charge of exports and imports, disapproves of the motion as it would impair the export and domestic import-substituting sectors of the nation.Less
This chapter analyzes the relationship between Chinese and U.S. monetary policy. It specifically looks into the nations' partnership during the global financial crisis when both nations were at an impasse. The monetary policy of the U.S. Federal Reserve is supported by the saving inflows from China, who invested the country's dollar earnings (from export surpluses) in U.S. Treasury bonds. However, due to the crisis, the U.S. was left with an unsustainable housing bubble, leading to the renminbi, the Chinese currency, to depreciate due to burgeoning export surpluses. Chinese authorities were therefore left to decide on whether or not to appreciate the renminbi. Appreciating it would serve U.S. interests as China would send fewer exports to the U.S. and deprive fewer Americans of their jobs. On the other hand, the Chinese commerce ministry, which is in charge of exports and imports, disapproves of the motion as it would impair the export and domestic import-substituting sectors of the nation.
C. Fred Blake
- Published in print:
- 2011
- Published Online:
- November 2016
- ISBN:
- 9780824835323
- eISBN:
- 9780824870379
- Item type:
- chapter
- Publisher:
- University of Hawai'i Press
- DOI:
- 10.21313/hawaii/9780824835323.003.0008
- Subject:
- Anthropology, Asian Cultural Anthropology
This chapter focuses on ghost bills which, as a paper simulation of real money made from paper, seem to defeat the conceptual power of a “paper money” and thus appear more real than the other, older ...
More
This chapter focuses on ghost bills which, as a paper simulation of real money made from paper, seem to defeat the conceptual power of a “paper money” and thus appear more real than the other, older forms of paper money. After providing an overview of the history and diffusion of ghost bills, the chapter considers the semiotics and use of ghost bills such as the Hell Bank Note. In particular, it examines the extent to which ghost bills represent a paradigm shift in the paper money tradition. It also discusses the identity of human figures and bank officials printed on paper notes; replicas of national currencies; notes that resemble the real-world Renminbi (RMB); face values and inflationary tendencies of ghost bills; signs of decommoditization of ghost bills; and a pedagogy of ghost bills.Less
This chapter focuses on ghost bills which, as a paper simulation of real money made from paper, seem to defeat the conceptual power of a “paper money” and thus appear more real than the other, older forms of paper money. After providing an overview of the history and diffusion of ghost bills, the chapter considers the semiotics and use of ghost bills such as the Hell Bank Note. In particular, it examines the extent to which ghost bills represent a paradigm shift in the paper money tradition. It also discusses the identity of human figures and bank officials printed on paper notes; replicas of national currencies; notes that resemble the real-world Renminbi (RMB); face values and inflationary tendencies of ghost bills; signs of decommoditization of ghost bills; and a pedagogy of ghost bills.
Jianhuai Shi (ed.)
- Published in print:
- 2008
- Published Online:
- February 2013
- ISBN:
- 9780226386829
- eISBN:
- 9780226387086
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226387086.003.0004
- Subject:
- Economics and Finance, South and East Asia
This chapter examines the relationship between the renminbi (RMB) real exchange rate and China's output by using the vector autoregression (VAR) model technique. The results show that RMB real ...
More
This chapter examines the relationship between the renminbi (RMB) real exchange rate and China's output by using the vector autoregression (VAR) model technique. The results show that RMB real appreciation has led to a decline in China's output, suggesting that currency appreciations have been contractionary in China, as traditional open economy macroeconomics forecasts. When the international finance linkage of the Chinese economy is accounted for, the effect of RMB real exchange rate shocks on China's output and the power of the shocks in explaining the change of China's output are relatively small, while the effect of U.S. interest rate shocks on China's output is relatively large. The intuition behind this finding may be that the effectiveness of China's capital controls has eroded over time and the scales of capital inflows and outflows have become large enough that external shocks through international finance channels have significant influence on the Chinese economy, exceeding the influence of external shocks through international trade channels. Shocks to domestic money supply and foreign demand also have important effects on China's output. However, government spending shocks have less power in explaining the change of China's output.Less
This chapter examines the relationship between the renminbi (RMB) real exchange rate and China's output by using the vector autoregression (VAR) model technique. The results show that RMB real appreciation has led to a decline in China's output, suggesting that currency appreciations have been contractionary in China, as traditional open economy macroeconomics forecasts. When the international finance linkage of the Chinese economy is accounted for, the effect of RMB real exchange rate shocks on China's output and the power of the shocks in explaining the change of China's output are relatively small, while the effect of U.S. interest rate shocks on China's output is relatively large. The intuition behind this finding may be that the effectiveness of China's capital controls has eroded over time and the scales of capital inflows and outflows have become large enough that external shocks through international finance channels have significant influence on the Chinese economy, exceeding the influence of external shocks through international trade channels. Shocks to domestic money supply and foreign demand also have important effects on China's output. However, government spending shocks have less power in explaining the change of China's output.
David R. Meyer
- Published in print:
- 2018
- Published Online:
- August 2018
- ISBN:
- 9780198817314
- eISBN:
- 9780191858833
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198817314.003.0007
- Subject:
- Economics and Finance, Financial Economics, International
China’s extraordinary economic growth over recent decades underpins the top global rank of its financial centres of Hong Kong, Shanghai, and Beijing. Hong Kong is China’s window to global capital, an ...
More
China’s extraordinary economic growth over recent decades underpins the top global rank of its financial centres of Hong Kong, Shanghai, and Beijing. Hong Kong is China’s window to global capital, an Asia-Pacific leader, and one of the top three global financial centres, along with London and New York. Shanghai is the commercial-financial centre, and Beijing is the political-regulatory centre of China. Government policy supports stock- and bond-connect programmes among its exchanges, Fintech, internationalization of the renminbi, and its ‘Belt and Road’ initiative and associated Asian Infrastructure Investment Bank (AIIB). These directly and indirectly strengthen China’s internal financial centre networks and the centres’ global links. The government’s political and economic policies maintain Hong Kong as a premier global centre. China controls its banks, and its strength as a large economy will help mitigate the impacts of a global financial crisis.Less
China’s extraordinary economic growth over recent decades underpins the top global rank of its financial centres of Hong Kong, Shanghai, and Beijing. Hong Kong is China’s window to global capital, an Asia-Pacific leader, and one of the top three global financial centres, along with London and New York. Shanghai is the commercial-financial centre, and Beijing is the political-regulatory centre of China. Government policy supports stock- and bond-connect programmes among its exchanges, Fintech, internationalization of the renminbi, and its ‘Belt and Road’ initiative and associated Asian Infrastructure Investment Bank (AIIB). These directly and indirectly strengthen China’s internal financial centre networks and the centres’ global links. The government’s political and economic policies maintain Hong Kong as a premier global centre. China controls its banks, and its strength as a large economy will help mitigate the impacts of a global financial crisis.
Karen P.Y. Lai
- Published in print:
- 2018
- Published Online:
- August 2018
- ISBN:
- 9780198817314
- eISBN:
- 9780191858833
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198817314.003.0008
- Subject:
- Economics and Finance, Financial Economics, International
This chapter examines the spatial and temporal dynamics shaping the development of financial markets and activities to account for the rise of Singapore as an international financial centre (IFC). ...
More
This chapter examines the spatial and temporal dynamics shaping the development of financial markets and activities to account for the rise of Singapore as an international financial centre (IFC). The analysis draws upon the preceding 1997 Asian financial crisis as industry changes and policy response back then set the stage for subsequent industry shifts, which have shaped the responses and impacts of firms, regulators, and consumers following the 2008 Global Financial Crisis. Key industry shifts include banking liberalization and changing forms of financial consumption in Singapore. The growing prominence of financial markets and emerging sectors, such as Islamic banking and finance (IBF) and offshore renminbi (RMB), and fintech are also examined in terms of their importance for Singapore’s future role as an IFC.Less
This chapter examines the spatial and temporal dynamics shaping the development of financial markets and activities to account for the rise of Singapore as an international financial centre (IFC). The analysis draws upon the preceding 1997 Asian financial crisis as industry changes and policy response back then set the stage for subsequent industry shifts, which have shaped the responses and impacts of firms, regulators, and consumers following the 2008 Global Financial Crisis. Key industry shifts include banking liberalization and changing forms of financial consumption in Singapore. The growing prominence of financial markets and emerging sectors, such as Islamic banking and finance (IBF) and offshore renminbi (RMB), and fintech are also examined in terms of their importance for Singapore’s future role as an IFC.
Célestin Monga
- Published in print:
- 2019
- Published Online:
- June 2019
- ISBN:
- 9780198830504
- eISBN:
- 9780191868696
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198830504.003.0003
- Subject:
- Economics and Finance, International, Development, Growth, and Environmental
The Chinese economy has become a multifaceted global public good. Even as China carefully and gradually rebalances its growth model from export-led to domestic consumption, it will also help address ...
More
The Chinese economy has become a multifaceted global public good. Even as China carefully and gradually rebalances its growth model from export-led to domestic consumption, it will also help address issues of global imbalances. Still, during that internal adjustment process, China will absorb increasingly large quantities of exports from around the world—including from developing countries that can strategically position themselves to competitively supply goods and services in light manufacturing and low-skilled industries which China dominated at earlier stages of its economic take-off. China’s industrial upgrading strategies, which reflect changes in its endowment structure, have defied mainstream economic prescriptions. The country’s stubbornness in designing and implementing steadfastly policy frameworks that identify potentially competitive industries and facilitate their emergence (while accounting for social and political constraints and realities) could provide useful blueprints for other developing countries. This chapter highlights several global externalities of China’s economy, and examines the opportunities and challenges they present. It also discusses some of China’s major macroeconomic risks and possible negative externalities to the world economy.Less
The Chinese economy has become a multifaceted global public good. Even as China carefully and gradually rebalances its growth model from export-led to domestic consumption, it will also help address issues of global imbalances. Still, during that internal adjustment process, China will absorb increasingly large quantities of exports from around the world—including from developing countries that can strategically position themselves to competitively supply goods and services in light manufacturing and low-skilled industries which China dominated at earlier stages of its economic take-off. China’s industrial upgrading strategies, which reflect changes in its endowment structure, have defied mainstream economic prescriptions. The country’s stubbornness in designing and implementing steadfastly policy frameworks that identify potentially competitive industries and facilitate their emergence (while accounting for social and political constraints and realities) could provide useful blueprints for other developing countries. This chapter highlights several global externalities of China’s economy, and examines the opportunities and challenges they present. It also discusses some of China’s major macroeconomic risks and possible negative externalities to the world economy.
Roberts Cynthia, Leslie Armijo, and Saori Katada
- Published in print:
- 2017
- Published Online:
- October 2017
- ISBN:
- 9780190697518
- eISBN:
- 9780190697556
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190697518.003.0002
- Subject:
- Political Science, Political Economy, International Relations and Politics
This chapter evaluates multiple dimensions of the global power shift from the incumbent G5/G7 powers to the rising powers, especially the members of the BRICS (Brazil, Russia, India, China, and South ...
More
This chapter evaluates multiple dimensions of the global power shift from the incumbent G5/G7 powers to the rising powers, especially the members of the BRICS (Brazil, Russia, India, China, and South Africa). Taking note of alternative conceptualizations of interstate “power,” the text maps the redistribution of economic capabilities from the G7 to the BRICS, most particularly the relative rise of China and decline of Japan, and especially Europe. Given these clear trends in measurable material capabilities, the BRICS have obtained considerable autonomy from outside pressures. Although the BRICS’ economic, financial, and monetary capabilities remain uneven, their relative positions have improved steadily. Via extensive data analysis, the chapter finds that whether one examines China alone or the BRICS as a group, BRICS members have achieved the necessary capabilities to challenge the global economic and financial leadership of the currently dominant powers, perhaps even the United States one day.Less
This chapter evaluates multiple dimensions of the global power shift from the incumbent G5/G7 powers to the rising powers, especially the members of the BRICS (Brazil, Russia, India, China, and South Africa). Taking note of alternative conceptualizations of interstate “power,” the text maps the redistribution of economic capabilities from the G7 to the BRICS, most particularly the relative rise of China and decline of Japan, and especially Europe. Given these clear trends in measurable material capabilities, the BRICS have obtained considerable autonomy from outside pressures. Although the BRICS’ economic, financial, and monetary capabilities remain uneven, their relative positions have improved steadily. Via extensive data analysis, the chapter finds that whether one examines China alone or the BRICS as a group, BRICS members have achieved the necessary capabilities to challenge the global economic and financial leadership of the currently dominant powers, perhaps even the United States one day.
Eswar S. Prasad
- Published in print:
- 2016
- Published Online:
- October 2016
- ISBN:
- 9780190631055
- eISBN:
- 9780190631086
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190631055.003.0001
- Subject:
- Economics and Finance, International
China pioneered the use of paper currency. This chapter traces the history of Chinese paper currency, from its origins in the 7th century, all the way to the present RMB notes. The chapter presents ...
More
China pioneered the use of paper currency. This chapter traces the history of Chinese paper currency, from its origins in the 7th century, all the way to the present RMB notes. The chapter presents evidence that China not only had the first paper currency but also the first fiat currency (in Kublai Khan’s regime), among the first episodes of hyperinflation, and one of the earliest currency wars on record. The chapter also has a brief overview of Chinese monetary history prior to the creation of the RMB in 1949, when the People’s Republic of China was established. Finally, the chapter describes the evolution of different RMB notes and explains the difference between the terms renminbi and yuan.Less
China pioneered the use of paper currency. This chapter traces the history of Chinese paper currency, from its origins in the 7th century, all the way to the present RMB notes. The chapter presents evidence that China not only had the first paper currency but also the first fiat currency (in Kublai Khan’s regime), among the first episodes of hyperinflation, and one of the earliest currency wars on record. The chapter also has a brief overview of Chinese monetary history prior to the creation of the RMB in 1949, when the People’s Republic of China was established. Finally, the chapter describes the evolution of different RMB notes and explains the difference between the terms renminbi and yuan.
Christopher M. Bruner
- Published in print:
- 2017
- Published Online:
- December 2016
- ISBN:
- 9780190466879
- eISBN:
- 9780190466909
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190466879.003.0007
- Subject:
- Law, Company and Commercial Law, Comparative Law
This chapter examines Hong Kong, a Special Administrative Region of the People’s Republic of China. Consisting of the Kowloon Peninsula and 263 islands at the mouth of the Pearl River Delta in the ...
More
This chapter examines Hong Kong, a Special Administrative Region of the People’s Republic of China. Consisting of the Kowloon Peninsula and 263 islands at the mouth of the Pearl River Delta in the South China Sea, Hong Kong is regarded as one of the most significant financial centers in the world. Throughout its history, Hong Kong has exemplified the “bridging” function associated with MDSJs—particularly as a gateway to the enormous domestic market and production capabilities of the Chinese Mainland. At the same time, however, Hong Kong’s substantial dependence upon and continuing integration with the Mainland has introduced challenges and risks that many fear could destabilize its financial center moving forward.Less
This chapter examines Hong Kong, a Special Administrative Region of the People’s Republic of China. Consisting of the Kowloon Peninsula and 263 islands at the mouth of the Pearl River Delta in the South China Sea, Hong Kong is regarded as one of the most significant financial centers in the world. Throughout its history, Hong Kong has exemplified the “bridging” function associated with MDSJs—particularly as a gateway to the enormous domestic market and production capabilities of the Chinese Mainland. At the same time, however, Hong Kong’s substantial dependence upon and continuing integration with the Mainland has introduced challenges and risks that many fear could destabilize its financial center moving forward.
