The Reality behind RMB-nisation

Chi Lo

Chapter 10 in The Renminbi Rises, 2013, pp 162-177 from Palgrave Macmillan

Abstract: Abstract Renminbi (RMB) internationalisation is a process of opening China’s capital account and integrating the country fully into the global system. But despite over 30 years of economic liberalisation, China is still unprepared for deeper integration with the world! The political system needs to be improved to get buy-in from the rest of the world to accept the RMB as a reserve currency. Political reform is imperative to eradicate moral hazard and rent seeking so that structural reforms can go deeper to support a globalised RMB. But serious incentive problems exist to hinder political changes. These are the cruel realities behind RMB-nisation.

Keywords: Communist Party; Capital Account; Political Reform; Reserve Currency; Rent Seek (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-34625-4_10

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DOI: 10.1057/9781137346254_10

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