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List of contents
1. Introduction; 2. China's aversion to a floating exchange rate; 3. Why does China want to internationalize the RMB?; 4. China's strategy of internationalizing the RMB; 5. The importance of capital account liberalization; 6. The importance of financial sector reform; 7. The importance of the offshore RMB market; 8. The potential of the RMB as a payment currency; 9. The prospects of RMB internationalization.
About the author
Edwin L. -C. Lai is Professor of Economics at HKUST. He has been Senior Research Economist and Adviser at the Federal Reserve Bank of Dallas, a consultant with the World Bank and a visiting fellow with Princeton University. He is an associate editor of Review of International Economics and has published in many top economics journals.
Summary
Written for readers interested in the economic analysis into the future of the USD, and the rising importance of the RMB. It points out the unsustainability of the dollar standard in the long run, that China has unique incentives to internationalize its currency, and how Hong Kong plays an important role.
Additional text
‘Is the renminbi poised to overtake the US dollar as the leading international and reserve currency? The answer, as with many things economic is: it's complicated. Here Edwin L. -C. Lai sifts through the complexities and provides a balanced view of the prospects. This is far and away the most comprehensive and up-to-date analysis of renminbi internationalization. Highly recommended.' Barry Eichengreen, George C. Pardee and Helen N. Pardee, Professor of Economics and Political Science, University of California, Berkeley
