The International Monetary System: Time for a Change?

Il Houng Lee ()
Additional contact information
Il Houng Lee: Korea Institute for International Economic Policy

No 14-30, World Economy Brief from Korea Institute for International Economic Policy

Abstract: The 2008 global financial crisis undermined the market confidence of the US financial market, challenging the current IMS which heavily relies on the USD. In light of this, this paper suggests that some changes in the IMS are possible by promoting the use of the RMB at the regional level. An Asian currency settlement of regional cross border transactions of goods and service will foster the use of the RMB and further, possibly reshaping the global currency landscape to a tri-polar currency cluster system. Although it will take some time for the non-USD currencies to even partly replace the US dollar dominated assets, this paper suggests that such a tri-polar system can address current shortcomings without disrupting the current order.

Keywords: International Monetary System; Monetary Policy; US; Currency; Financial Market (search for similar items in EconPapers)
Pages: 6 pages
Date: 2014-09-05
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ssrn.com/abstract=2491953 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwe:2014_030

Access Statistics for this paper

More papers in World Economy Brief from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Geun Hye Son ().