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Strategies for Internationalizing the RenminbiSelecting a Path for RMB’s Internationalization

Strategies for Internationalizing the Renminbi: Selecting a Path for RMB’s Internationalization [Even a cursory review of the monetary policies, the exchange rate systems and the experience of developed countries and developing countries in opening the capital account during the economic and opening-up process, clearly reveals Mundell’s “Impossible Trinity.” This theory reflects the central conflict plaguing the economic system under an open economy and indicates the extent of policy limitations when selecting from among multiple options. It signifies that the process of internationalizing the RMB may face multiple contradictions, conflicts, and risks—yet the time for selecting a path towards the internationalization of the RMB is now. At the same time, a review of various choices adopted by developed and developing countries in terms of Mundell’s “Impossible Trinity” indicate that choices made among countries are determined by their status and structures at various stages of economic development. As their given economic development evolves, we find that there is actually no unique corner solution, and the question becomes whether there are any non-corner solutions. If there are, what’s the significance of the non-corner solutions for internationalizing the RMB?] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Strategies for Internationalizing the RenminbiSelecting a Path for RMB’s Internationalization

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Publisher
Springer Singapore
Copyright
© Social Sciences Academic Press and Springer Nature Singapore Pte Ltd. 2018. The print edition is not for sale in China Mainland. Customers from China Mainland please order the print book from: Social Sciences Academic Press.
ISBN
978-981-13-0799-7
Pages
109 –128
DOI
10.1007/978-981-13-0800-0_4
Publisher site
See Chapter on Publisher Site

Abstract

[Even a cursory review of the monetary policies, the exchange rate systems and the experience of developed countries and developing countries in opening the capital account during the economic and opening-up process, clearly reveals Mundell’s “Impossible Trinity.” This theory reflects the central conflict plaguing the economic system under an open economy and indicates the extent of policy limitations when selecting from among multiple options. It signifies that the process of internationalizing the RMB may face multiple contradictions, conflicts, and risks—yet the time for selecting a path towards the internationalization of the RMB is now. At the same time, a review of various choices adopted by developed and developing countries in terms of Mundell’s “Impossible Trinity” indicate that choices made among countries are determined by their status and structures at various stages of economic development. As their given economic development evolves, we find that there is actually no unique corner solution, and the question becomes whether there are any non-corner solutions. If there are, what’s the significance of the non-corner solutions for internationalizing the RMB?]

Published: Aug 30, 2018

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