Loading...
Please wait, while we are loading the content...
Similar Documents
The Impact of Yuan Internationalization on the Euro-Dollar Exchange Rate
| Content Provider | EconStor |
|---|---|
| Author | Benassy-Quere, Agnes Forouheshfar, Yeganeh |
| Abstract | We study the implication of a multipolarization of the international monetary system on cross-currency volatility. More specifically, we analyze whether the internationalization of the yuan could modify the impact of asset supply and trade shocks on the euro-dollar exchange rate, within a three-country, three-currency portfolio model. Our static model shows that the internationalization of the yuan (defined as a rise in the yuan in international portfolios) would be either neutral or stabilizing for the euro-dollar rate, whatever the exchange-rate regime of China. Moving to a dynamic, stock-flow framework, we show that the internationalization of the yuan would make exchange-rate variations more efficient to stabilize net foreign asset positions after a trade shock. |
| File Format | |
| Language | English |
| Publisher | Center for Economic Studies and Ifo Institute (CESifo) |
| Publisher Date | 2013-01-01 |
| Publisher Place | Munich |
| Access Restriction | Open |
| Rights Holder | http://www.econstor.eu/dspace/Nutzungsbedingungen |
| Subject Keyword | China yuan exchange-rate regime euro dollar Foreign Exchange International Monetary Arrangements and Institutions |
| Content Type | Text |
| Resource Type | Article |
