China versus the United States: IMS Meets IPS
AEA Papers and Proceedings
vol. 109,
May 2019
(pp. 476-81)
Abstract
Currently both the International Monetary System (IMS) and the International Price Systems (IPS) are dominated by the United States. The emergence of China, both as reserve currency and as a currency of invoicing, is likely to disrupt this status quo. We provide a framework to understand the forces that will shape this transition and identify sources of instability. We highlight the risk of an abrupt shift triggered by a run on the dollar.Citation
Farhi, Emmanuel, and Matteo Maggiori. 2019. "China versus the United States: IMS Meets IPS." AEA Papers and Proceedings, 109: 476-81. DOI: 10.1257/pandp.20191057Additional Materials
JEL Classification
- E42 Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
- F31 Foreign Exchange
- F33 International Monetary Arrangements and Institutions
- O11 Macroeconomic Analyses of Economic Development
- O19 International Linkages to Development; Role of International Organizations
- P24 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure; Money; Inflation
- P33 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid