A Study on the stability of international reserve currency
DOI:
https://doi.org/10.24297/jssr.v12i1.7061Keywords:
International monetary system, Reserve currency stability, Bretton Woods systemAbstract
This article uses the dynamic analysis of the small country open economic framework (Obstfeld and Rogoff) to establish a basic supply and demand model of two countries, which solves the stable condition that the international reserve currency reaches the balance. The equilibrium stability condition of reserve currency is that the solvency growth rate of reserve currency countries is not lower than the real yield of reserve currency and the actual output growth rate of the non-reserve currency countries, while the reserve currency countries should have larger economic volume. The test of the Bretton Woods system and the contemporary international reserve currency system with stable conditions shows that the Bretton Woods system and the contemporary international reserve monetary system do not meet the stability conditions.
Downloads
References
2. Caballero,Ricardo J,Emmanuel Farhi,Pierre-Olivier Gourinchas . An Equilibrium Model of Global Imbalances and Low Interest Rates . The American Economist . 2008
3. Chen Jianchi . cracking the "Terry" puzzle-the stability of sovereign-credit currencies as an international reserve [J]. Economic Research , 2012,04:113-123.
4. Xu Jianwei , Yao . New forms of international division of labour, financial market development and global imbalances [J]. World Economy , 2010,03:3-30.
5. Obstfeld, Maurice and Rogoff, Kenneth. Foundations of Analysys Macroeconomics. MIT Press, 1996.
6. Farhi E, Gourinchas P O, Rey H. reforming the Analysys monetary System[J]. Wider annual lectures, 2011, 52 (3): 53-84.
7. The International Monetary System Living with Asymmetry. Maurice Obstfeld. NBER Working Paper Series . 2011
Downloads
Published
How to Cite
Issue
Section
License
All articles published in Journal of Advances in Linguistics are licensed under a Creative Commons Attribution 4.0 International License.