【IMI Working Paper No. 1916 [EN]】International Policy Coordination and RMB Internationalisation: Theory and Historical Experience

2019-12-02 IMI

【Abstract】 Based on theoretical logics derived from the literature and the historical experience, we take a deep look at the relationship between international policy coordination and RMB internationalisation. International policy coordination and RMB internationalisation are complements. On the one hand, an effective policy coordination mechanism needs the support of an efficient international monetary system, thus calling for diversification of international vehicle currencies. RMB, supported by solid economic fundamentals, can be a good candidate as one of the international vehicle currencies in the diversified international monetary system. On the other hand, due to the existence of policy spillover effects, an appropriate coordination mechanism improves policy effectiveness in China, which promotes RMB internationalisation by enhancing China’s economic and financial strength. 【Authors】

Zongxin Qian, research fellow of IMI, Associate Professor, School of Finance, Renmin University of China; Jingyun Gan, School of Finance, Renmin University of China; Yonghong Tu, Deputy Director of IMI, Professor, School of Finance, Renmin University of China; Fang Wang, Deputy Director of IMI, Professor, School of Finance, Renmin University of China. IMI Working Paper No. 1916 [EN]

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【IMI Working Paper No. 1916 [EN]】International Policy Coordination and RMB Internationalisation: Theory and Historical Experience

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