The research purpose of this book is to advance the reform of the existing international monetary system through the establishment of a new international currency standard that is a super-sovereign currency.
International Monetary System provides international economic activities rules for the human society. It has significant influences not only on international economic activities of various countries but also on their domestic economic activities as well. Since the disintegration of International gold standard in 1971, studies on reform of international monetary system have remained as the important research themes for international economic research fields. Improvements of international monetary system to facilitate worldwide economic developments have been interests to all. Thus this book has valuable theoretical contributions.
Since the collapse of Bretton Woods System, the current international monetary system of Jamaica System has come into being. Under Jamaica System, the sovereign currency US dollar has acted as the main international currency. This has caused vulnerability of money standard, instability of exchange rate system, and frequent occurrences of currency crises. Calls for international monetary system reforms have increased under these circumstances. Various programs such as improved international gold standard system, expansion of Special Drawing Rights, as well as establishment of single world currency surface. So this book has significant practical contributions as well.
The major contribution of this book is the proposal of new scheme of establishment of supra-sovereign international currency. This is an entire new reform program that differs significantly from any past or current reform programs in international economic research fields from all over the world.
Author(s): Chong Li
Publisher: Springer
Year: 2022
Language: English
Pages: 257
City: Singapore
Preface
Contents
About the Author
1 Changes of the International Monetary System
1 Fixed Exchange Rate System Based on Gold Standard
1.1 The Establishment of Fixed Exchange Rate Based on Gold Standard
1.2 The Characteristics of Fixed Exchange Rate System Based on Gold Standard
1.3 The Collapse of the Fixed Exchange Rate System Based on Gold Standard
1.4 Reflections on the Fixed Exchange Rate System Based on Gold Standard
2 Adjustable Pegging System Based on Gold Exchange Standard
2.1 The Establishment of Bretton Woods System
2.2 The Issues with the Bretton Woods System
2.3 The Collapse of the Bretton Woods System
2.4 Reflection on the Bretton Woods System
3 Floating Exchange Rate System Based on Sovereign Currency Standard
3.1 The Formation and Characteristics of the Jamaica System
3.2 Comparisons of Jamaica System and Bretton Woods System
3.3 Operations of the Jamaica System
4 Summary
2 The Problems of Current International Monetary System
1 The Benefit Distribution Pattern of Jamaica System
1.1 International Seigniorage Income Gained by Developed Countries
1.2 Depreciation of USD Cause Losses to Other Countries Around the World
1.3 The Decision-Making Power of International Monetary Affairs is Controlled by United States
2 Inherent Defects of Jamaica System
2.1 Imbalance of American Rights and Responsibilities Leads to Conflicts of Interest
2.2 Imbalance of Economic Development Leads to the Status Decline of USD
2.3 Exchange Rate Fluctuations Affect International Economic Developments
3 Jamaica System and Occurrences of Financial Crisis
3.1 The Frequent Occurrences of Financial Crisis
3.2 Reasons of the Outbreak of Financial Crises in the International Monetary System
4 Summary
3 Analysis of Programs of International Monetary Standard Reform
1 Major Programs of International Monetary Standard Reform
1.1 The Calls for International Monetary Standard Reform
1.2 Directions of International Monetary Standard Reform
1.3 The Reform Programs on International Monetary Standard
2 Comparisons and Thoughts on the Programs of International Currency Standard Reform
2.1 Comparisons Between Keynes Plan and White Plan
2.2 Analyses About Modified Gold Standard
2.3 Analyses on the Reform Plan of Special Drawing Rights
2.4 Analyses on Establishing the Single World Currency
3 Practice of the Supra-sovereign Regional Currency
3.1 Emergence and Development of Euro
3.2 European System of Central Banks
3.3 Operation Mechanism of the Eurozone
4 Summary
4 A New Program About Supra-sovereign International Currency
1 The Establishment of World Central Bank
1.1 Basic Characteristics of World Central Bank
2 The Operation of Supra-sovereign International Currency
2.1 Asset Coverage of Supra-sovereign International Currency
2.2 Valuing Method of Supra-sovereign International Currency
2.3 Issue and Circulation of Supra-sovereign International Currency
3 Operational Way of New International Monetary System
3.1 Characteristics of New International Monetary System
3.2 Regulatory Mechanism of International Balance of Payment
3.3 Creation and Regulatory Method of “World Dollar” Deposit Money
3.4 Operation Mode of “World Dollar” Trading and Loan Market
4 Summary
5 Effects to Establish the Supra-sovereign International Currency
1 Benefit Adjustment Effect of Supra-sovereign International Currency
1.1 Redistribution of International Seigniorage Revenue
1.2 Adjustments of Short-term and Long-term Interests
2 International Trade Effect of Supra-sovereign International Currency
2.1 Effect of Supra-sovereign International Currency on International Trade
2.2 Effect of Supra-sovereign International Currency on International Trade Adjustment Mechanism
3 International Financial Effect of Supra-sovereign International Currency
3.1 Effect of Supra-sovereign International Currency on International Finance
3.2 Impact of Supra-sovereign International Currency on Governmental Financial Activities
4 Summary
6 Simulated Operation of Supra-sovereign International Currency
1 Simulated Operation of Valuing Method of Supra-sovereign International Currency
1.1 The Valuing Rules of “World Dollar”
1.2 The Value of “World Dollar” and Its Changes
1.3 The Analysis of the Stability of “World Dollar” Value
2 Simulation Analysis on the Exchange Rate of Supra-sovereign International System
2.1 Exchange Rate Between “World Dollar” and Other Currencies
2.2 Stability Analysis of Exchange Rate System with “World Dollar”
3 The Simulation Test to the Operation Performance of the Supra-sovereign International Currency
3.1 Cost Saving in International Economic Activities and “World Dollar”
3.2 The Stability of “World Dollar” and International Commodities Prices
4 Summary
7 Path to Establish Supra-sovereign International Currency
1 Feasibility on Selection of Transitional Forms
1.1 Analyses on Progress of Regional Monetary Cooperation
1.2 Regional Exchange Rate System Is Not an Inevitable Transitional Stage
2 Means to Advance the Establishment of a Supra-sovereign International Currency
2.1 Consideration of Countries with Vested Interests
2.2 Strengthening Bilateral and Multilateral Consultations
2.3 Striving for Greater Rights in the International Monetary Fund
2.4 Creating Moderate Pressures to Reform
3 Risks in Establishment of a Supra-sovereign International Currency
3.1 Impact of Establishment of a Supra-sovereign International Currency on the US Dollar
3.2 Impact of Catastrophic Events on the Supra-sovereign International Currency
4 Summary
8 Acceleration of Internationalization of China Dollar
1 Historical Opportunities of Internationalization of China Dollar
1.1 Foundation of and Conditions for Internationalization of a Sovereign Currency
1.2 A Critical Time for the Internationalization of China Dollar
2 The Basis for the Internationalization of China Dollar
2.1 Current Situation of the Internationalization of China Dollar
2.2 Progress of the Internationalization of China Dollar
3 Steps for the Internationalization of China Dollar
3.1 Realizing Capital and Financial Account Convertibility of China Dollar
3.2 Establishing a Relatively Complete Exchange Rate Formation Mechanism for China Dollar
4 Summary
Questions and Explanations
References
