Advanced search
Publication Cover
Review of International Political Economy Volume 25, 2018 - Issue 5
Submit an article Journal homepage
1,027
Views
4
CrossRef citations to date
0
Altmetric
Original Articles

Structural conditions for currency internationalization: international finance and the survival constraint

Stefan AngrickNational Graduate Institute for Policy Studies (GRIPS), Public Policy Program, Tokyo, JapanCorrespondence[email protected]
ORCID Iconhttp://orcid.org/0000-0001-6364-8734View further author information
ORCID Icon
Pages 699-725 | Received 21 May 2017, Accepted 29 Apr 2018, Published online: 17 Oct 2018

References

  • Akamatsu, K. (1962). A historical pattern of economic growth in developing countries. The Developing Economies, 1, 3–25.
  • Ali, M. (2016). Global imbalances and asymmetric returns to US foreign assets: Fitting the missing pieces of the US balance of payments puzzle. International Review of Applied Economics, 30, 167–187.
  • Angrick, S. (2018). Global liquidity and monetary policy autonomy: An examination of openeconomy policy constraints. Cambridge Journal of Economics, 42(3), 117–135.
  • Aoki, M., Kim, H.-K., & Okuno-Fujiwara, M., (Eds.) (1997). The role of government in East Asian economic development: Comparative institutional analysis. Oxford: Oxford University Press.
  • Bell, S. (2001). The role of the state and the hierarchy of money. Cambridge Journal of Economics, 25, 149–163.
  • BIS. (2016). Bank for international settlements: Triennial Central Bank Survey of foreign exchange and derivatives market activity in 2016. Basel: BIS Triennial Central Bank Survey 2016, Bank for International Settlements.
  • Blanchard, O., Giavazzi, F., & Sa, F. (2005). The US current account and the dollar. NBER Working Paper 11137. Cambridge, MA: National Bureau of Economic Research.
  • Blyth, M., & Matthijs, M. (2017). Black swans, lame ducks, and the mystery of IPE’s missing macroeconomy. Review of International Political Economy, 24, 203–231.
  • Blyth, M., Helgadóttir, O., & Kring, W. (2016). Ideas and Historical Institutionalism. In Orfeo, Fioretos, Falleti, Tulia G., & Sheingate, Adam, (Eds.), The Oxford handbook of historical institutionalism (pp. 142–162). Oxford: Oxford University Press.
  • Bordo, M. D., & McCauley, R. N. (2016). The current account version of the Triffin dilemma. Atlantic Economic Journal, 44, 171–182.
  • Borio, C., & Disyatat, P. (2011). Global imbalances and the financial crisis: Link or no link? BIS Working Paper 346. Basel: Bank for International Settlements.
  • Braun, B. (2016). Speaking to the people? Money, trust, and central bank legitimacy in the age of quantitative easing. Review of International Political Economy, 23(3), 1064–1029.
  • Brown, J. R. (1994). Opening Japan’s financial markets. London: Routledge.
  • Buiter, W. H. (2008). Can central banks go broke? CEPR Policy Insight 24. London: Centre for Economic Policy Research.
  • Chang, H.-J. (2003). Kicking away the ladder: Infant industry promotion in historical perspective. Oxford Development Studies, 31, 21–32.
  • Chey, H.-K. (2012). Theories of international currencies and the future of the world monetary order. International Studies Review, 14, 51–77.
  • Chey, H.-K. (2013). Can the Renminbi rise as a global currency?: The political economy of currency internationalization. Asian Survey, 53, 348–368.
  • Chey, H.-K. (2015). Renminbi in ordinary economies: A demand-side study of currency globalization. China & World Economy, 23(3), 1–21.
  • Chey, H.-K. (2018). The international politics of reactive currency statecraft: Japan’s reaction to the rise of the Chinese Renminbi. New Political Economy, Forthcoming.
  • Chey, H.-K., Kim, G.-Y., & Lee, D. H. (2016). Who are the first users of a newly-emerging international currency? A demand-side study of Chinese Renminbi Internationalization. (Working Paper 2016–19). Seoul: Bank of Korea Economic Research Institute.
  • Chinn, M. D., & Frankel, J. A. (2008). Why the Euro will rival the Dollar. International Finance, 11, 49–73.
  • Cohen, B. J. (1998). The geography of money. Ithaca: Cornell University Press.
  • Cohen, B. J. (2014). Will history repeat itself? Lessons for the Yuan (ADBI Working Paper 453). Tokyo: Asian Development Bank Institute.
  • Cohen, B. J., & Benney, T. M. (2014). What does the international currency system really look like? Review of International Political Economy, 21, 1017–1041.
  • Corsetti, G., Dedola, L., Jarociński, M., Maćkowiak, B., & Schmidt, S., (2016). Macroeconomic stabilization, monetary–fiscal interactions, and Europe’s monetary union (ECB Working Paper 1988). Frankfurt: European Central Bank.
  • de Cecco, M. (1974). Money and empire: The international gold standard, 1890–1914. Oxford: Blackwell.
  • Domar, E. D. (1950). The effect of foreign investment on the balance of payments. The American Economic Review, 40(5), 805–826.
  • Dooley, M. P., Folkerts-Landau, D., & Garber, P. (2009). Bretton woods II still defines the international monetary system (NBER Working Paper 14731). Cambridge, MA: National Bureau of Economic Research.
  • Dooley, M. P., Folkerts-Landau, D., & Garber, P. M. (2004). The US current account deficit and economic development: Collateral for a total return swap (NBER Working Paper 10727). Cambridge, MA: National Bureau of Economic Research.
  • Drezner, D. W. (2014). The system worked: How the world stopped another great depression. Oxford: Oxford University Press.
  • Eichengreen, B. (2011). Exorbitant privilege: The rise and fall of the dollar and the future of the international monetary system. Oxford: Oxford University Press.
  • Eichengreen, B. (2013). Number one country, number one currency? The World Economy, 36, 363–374.
  • Eichengreen, Barry, & Hausmann, Ricardo, (Eds.) (2005). Other people’s money: Debt denomination and financial instability in emerging market economies. Chicago: University of Chicago Press.
  • Frankel, J. (2012). Internationalization of the RMB and historical precedents. Journal of Economic Integration, 27, 329–365.
  • Fukumoto, T., & Muto, I. (2012). Rebalancing China’s economic growth: Some insights from Japan’s experience. China & World Economy, 20, 62–82.
  • Gabor, D. (2016). The (impossible) repo trinity: The political economy of repo markets. Review of International Political Economy, 23(6), 967–1000.
  • Gabor, D. (2018). Goodbye (Chinese) shadow banking, hello market-based finance. Development and Change, 49, 394–419.
  • Garon, S. (2011). Postwar Japan’s national salvation. The Asia-Pacific Journal, 9(50), 1–29.
  • Germain, R., & Schwartz, H. (2014). The political economy of failure: The euro as an international currency. Review of International Political Economy, 21, 1095–1122.
  • Goldberg, L. S., & Tille, C. (2005). Vehicle currency use in international trade (NBER Working Paper 11127). National Bureau of Economic Research.
  • Gourinchas, P.-O., & Rey, H. (2007). From world banker to world venture capitalist: US external adjustment and the exorbitant privilege. In Clarida, Richard H. (Ed.), G7 current account imbalances: Sustainability and adjustment (pp. 11–66). Chicago: University of Chicago Press.
  • Grassman, S. (1973). A fundamental symmetry in international payment patterns. Journal of International Economics, 3, 105–116.
  • Hausmann, R., Hidalgo, C., Bustos, S., Coscia, M., Chung, S., Jimenez, J., … Yıldırım, M. A. (2011). The atlas of economic complexity: Mapping paths to prosperity. Hollis, NH: Puritan Press.
  • Helleiner, E. (2017). Downsizing the dollar in the age of Trump. Brown Journal of World Affairs, 23(2), 9–27.
  • Helleiner, E., & Malkin, A. (2012). Sectoral interests and global money: Renminbi, dollars and the domestic foundations of international currency policy. Open Economies Review, 23, 33–55.
  • Ilzetzki, E., Reinhart, C. M., & Rogoff, K. S. (2017). Exchange arrangements entering the 21st century: Which anchor will hold? (NBER Working Paper 23134). Cambridge, MA: National Bureau of Economic Research.
  • Ito, H., & Kawai, M. (2016). Trade invoicing in the major currencies in the 1970s–1990s: Lessons for renminbi internationalization (RIETI Discussion Paper 16-E-005). Tokyo: Research Institute of Economy, Trade & Industry.
  • Ito, T., Koibuchi, S., Sato, K., & Shimizu, J. (2010). Why has the yen failed to become a dominant invoicing currency in Asia? A firm-level analysis of Japanese Exporters' invoicing behavior (NBER Working Paper). Cambridge, MA: National Bureau of Economic Research.
  • Japan Customs. (2017). Böeki torihiki tsüka betsu hiritsu [Trade denomination by currency]. Tokyo: The Author.
  • Johnson, J. (2013). Monetary reform and currency internationalization (CIGI Paper 4). Waterloo, ON: Centre for International Governance Innovation.
  • Kawai, M., & Pontines, V. (2014). Is there really a renminbi nloc in Asia? (ADBI Working Paper 467). Tokyo: Asian Development Bank Institute.
  • Keynes, J. M. (1980). Activities 1940–1944: Shaping the post-war world: the Clearing union. London: Macmillan.
  • Kindleberger, C. P. (1973). The World in Depression, 1929–1939. Berkeley, CA: University of California Press.
  • Kirshner, J. (2014). Same as it ever was? Continuity and change in the international monetary system. Review of International Political Economy, 21, 1007–1016.
  • Koo, R. C. (2014). The escape from balance sheet recession and the QE trap: A hazardous road for the world economy. Hoboken: Wiley.
  • Kregel, J. (2004). External financing for development and international financial instability (UNCTAD G-24 Discussion Paper 32). Geneva: United Nations Conference on Trade and Development.
  • Kregel, J. (2013). Domestic rebalancing to reduce global imbalances: The role of financial markets. Changing of the guard?, INET annual conference 2013: China in the world: Growth, adjustment and integration.
  • Kregel, J. (2014). Capital account liberalization in China. In Kenji, Aramaki, Arora, Vivek, Erten, Bilge, Gabor, Daniela, Gallagher, Kevin P., Kregel, Jan, Ma, Guonan, … Zhang, Ming, (Eds.). Learning lessons in capital account liberalization in China: The need for a balanced approach (pp. 99–108). Boston: Boston University.
  • Kwan, C. H. (2001). Yen bloc: Toward economic integration in Asia. Washington, DC: Brookings Institution Press.
  • Kwan, C. H. (2002). The rise of China and Asia's flying-geese pattern of economic development: An empirical analysis based on US import statistics (RIETI Discussion Paper 02-E-009). Tokyo: Research Institute of Economy, Trade & Industry.
  • Lane, P. R., & Milesi-Ferretti, G. M. (2007a). A global perspective on external positions. In Clarida, Richard H. (Ed.), G7 current account imbalances: Sustainability and adjustment (pp. 67–102). Chicago: University of Chicago Press.
  • Lane, P. R., & Milesi-Ferretti, G. M. (2007b). The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970–2004. Journal of International Economics, 73(2), 223–250.
  • Liao, S., & McDowell, D. (2015). Redback rising: China’s bilateral swap agreements and Renminbi internationalization. International Studies Quarterly, 59, 401–422.
  • Liao, S., & McDowell, D. (2016). No reservations: International order and demand for the Renminbi as a reserve currency. International Studies Quarterly, 60, 272–293.
  • Lin, J. Y. (2010). New structural economics: A framework for rethinking development (Policy Research Working Papers 5197). Washington, DC: World Bank.
  • Lin, J. Y. (2012). New structural economics. Washington, DC: World Bank.
  • List, F. (1909). The national system of political economy. London: Longmans, Green and Co.
  • McCauley, R. N. (2011). Renminbi internationalisation and China's financial development. BIS Quarterly Review, December 2011. Basel: Bank for International Settlements.
  • McDowell, D. (2013). Taking on the Dollar: Japanese and Chinese currency internationalization in comparative perspective. Mimeo 20 March 2013, Ghent Institute of International Studies, Ghent University, Ghent.
  • McKinnon, R. I. (1973). Money and capital in economic development. Washington, DC: Brookings Institution Press.
  • McKinnon, R. I., & Schnabl, G. (2004). The east Asian dollar standard, fear of floating, and original sin”. Review of Development Economics, 8, 331–360.
  • McKinnon, R. I., & Schnabl, G. (2005). The east Asian dollar standard, fear of floating, and original sin. In McKinnon, Ronald I. (Ed.), Exchange rates under the east Asian dollar standard: Living with conflicted virtue. (pp. 13–52). Cambridge, MA: MIT Press.
  • McNally, C. A., & Gruin, J. (2017). A novel pathway to power? Contestation and adaptation in China’s internationalization of the RMB. Review of International Political Economy, 24, 599–628.
  • Mehrling, P. (2013). The inherent hierarchy of money. In Lance, Taylor, Rezai, Armon, & Michl, Thomas R. (Eds.). Social fairness and economics: Economic essays in the spirit of Duncan Foley (pp. 394–404). London: Routledge.
  • Minsky, H. P. (2004). Induced investment and business cycles. Cheltenham: Edward Elgar.
  • Minsky, H. P. (2008). Stabilizing an unstable economy. New York: McGraw-Hill.
  • Norrlof, C. (2014). Dollar hegemony: A power analysis. Review of International Political Economy, 21, 1042–1070.
  • Nurkse, R. (1954). International investment to-day in the light of nineteenth-century experience. The Economic Journal, 64, 744–758.
  • Ostry, J. (2012). Managing capital flows: What tools to use?. Asian Development Review, 29(1), 83–89.
  • Park, Y. C. (2010). RMB internationalization and its implications for financial and monetary cooperation in east Asia. China & World Economy, 18(2), 1–21.
  • Pettis, M. (2013a). Avoiding the fall: China's economic restructuring. Washington, DC: Carnegie Endowment for International Peace.
  • Pettis, M. (2013b). The great rebalancing: Trade, conflict, and the perilous road ahead for the world economy. Princeton: Princeton University Press.
  • Pozsar, Z. (2011). Institutional cash pools and the Triffin dilemma of the US banking system. IMF Working Papers, 11-190-1.
  • Prasad, E. S. (2016). Gaining currency: The rise of the Renminbi. Oxford: Oxford University Press.
  • Rajan, R. (2013). Statement by Dr. Raghuram Rajan on taking office on September 4, 2013 – Reserve Bank of India. Retrieved January 5, 2016, fromhttps://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=29479
  • Schenk, C. R. (2013). The decline of sterling: Managing the retreat of an international currency, 1945–1992. Cambridge: Cambridge University Press.
  • Sen, A. (1960). Choice of techniques. Oxford: Basil Blackwell.
  • Shiraishi, T. (2014). Changing fortunes: comparing state building and economic development in Indonesia, the Philippines, Thailand and Malayisa. In Keijiro, Otsuka, & Shiraishi, Takashi (Eds.), State building and development. (pp. 73–94). London: Routledge.
  • Sonobe, T., & Otsuka, K. (2006). Cluster-cased industrial development: An east Asian model. Basingstoke: Palgrave Macmillan.
  • Stokes, D. (2014). Achilles’ deal: Dollar decline and US grand strategy after the crisis. Review of International Political Economy, 21, 1071–1094.
  • Strange, S. (1971). Sterling and British policy: a political study of an international currency in decline. Oxford: Oxford University Press.
  • Subacchi, P. (2017). The people’s money: How China is building a global currency. New York: Columbia University Press.
  • Subramanian, A. (2011). Eclipse: Living in the shadow of China’s economic dominance. Washington, DC: Peterson Institute for International Economics.
  • Subramanian, A., & Kessler, M. (2012). The Renminbi bloc is here: Asia down, rest of the world to go? (PIIE Working Paper 12–19). Washington, DC: Peterson Institute for International Economics.
  • Sushko, V., Borio, C., McCauley, R. N., & McGuire, P. (2016). The failure of covered interest parity: FX hedging demand and costly balance sheets (BIS Working Paper 525). Basel: Bank for International Settlements.
  • Takagi, S. (2011). Internationalising the yen, 1984–2003: unfinished agenda or mission impossible? Currency internationalisation: Lessons from the global financial crisis and prospects for the future in Asia and the Pacific (BIS Paper 61). Basel: Bank for International Settlements.
  • Triffin, R. (1960). Gold and the dollar crisis: The future of convertibility. New Haven: Yale University Press.
  • Westphal, L. E., Rhee, Y. W., & Pursell, G. (1981). Korean industrial competence: Where it came from (World Bank Staff Working Paper SWP469). Washington, DC: World Bank.
  • Widmaier, W. W. (2016). Economic ideas in political time. Cambridge: Cambridge University Press.
  • Wray, L. R., & Fernandez Lommen, Y. (2013). Monetary and fiscal operations in the people's republic of China: An alternative view of the options available (ADB Economics Working Paper 380). Manila: Asian Development Bank.
  • Yoshino, N. (2012). Global imbalances and the development of capital flows among Asian countries. OECD Journal: Financial Market Trends, 2012, 81.
  • Yu, Y. (2014). How far can renminbi internationalization go? (ADBI Working Paper 461). Tokyo: Asian Development Bank Institute.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Order Reprints Request Corporate Permissions

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

Request Academic Permissions

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.