What does the international currency system really look like?

Cohen, Benjamin J.; Benney, Tabitha M.

doi:10.1080/09692290.2013.830980

Cited by 54 publications

(33 citation statements)

References 12 publications

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“…At the international level, the growth of euro usage in trade has decreased and now seems over: the euro somehow remains stable as a second-rank currency for international trade, but does not threaten the dollar, in spite of the ongoing process of Eurozone enlargement or the price stability so dear to the ECB. Along these lines, the recent article of Cohen and Benney (2014) shows that the international currency system is much more unipolar -understood as dollar-centered-than bipolar, by focusing on other functions of money.…”

Section: Resultsmentioning

confidence: 96%

The Euro: An International Invoicing Currency?

Faudot

2015

International Journal of Political Economy

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Section: Resultsmentioning

confidence: 96%

The Euro: An International Invoicing Currency?

Faudot

2015

International Journal of Political Economy

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“…A recent article by Cohen and Benney (2014;henceforth C-B) provides an excellent summary of the money function-agent motivation matrix framework first introduced by Cohen (1971), 2 and now used by many political economists in debating the dollar's future as an international currency. 3 After first explaining why the creation of a supranational currency is an Source: Cohen and Benney (2014) impossibility in today's political climate and why, therefore, a few national currencies have to be elevated to the role of international currency, C-B proceed to outline the standard economic criteria behind this elevation. As shown in Table 1, these criteria are determined by the demands made by two types of agents, private and official, on the three functions of money.…”

Section: The Money Function-agent Motivation Matrixmentioning

confidence: 99%

The US Dollar's Continuing Hegemony as an International Currency: A Double‐matrix Analysis

Kaltenbrunner¹,

Lysandrou²

2017

Development and Change

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The standard framework for debating the international currency system casts doubt on the dollar's continuing hegemonic position because it raises questions regarding the ability of the US to finance its external liabilities in the face of worsening economic fundamentals. This article addresses these questions by adding to the usual matrix linking the international functions of money to two different types of agents, private and official, a second matrix linking the functions of money to two different types of commodities, material goods and services on the one hand, and financial securities on the other. Once it is understood that bonds and equities are now not only different types of funding instruments but also different types of commodities whose use value to the world's large investors is to serve as stores of value, it is possible to understand why the size of the US capital markets will long continue to bind foreign investors to the dollar because it will be some time before other capital markets will reach a comparable size.

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“…At the private level, an international currency is a vehicle for foreign exchange trading, an instrument for trade invoicing and settlement, and a means to facilitate cross-border investment. At the official level, it serves as intervention currency, an exchange rate anchor, and as a reserve currency (Cohen, Benney, 2012). Moreover, international currencies are issued by countries characterized by a high level of financial stability, open and deep financial markets, and a large share of world trade and global output (GDH, 2011).…”

Section: Current and Prospective International Currenciesmentioning

confidence: 99%

“…Other than the U.S. dollar and the euro, only three currencies play an international role: the yen, the pound sterling, and the Swiss franc. In all three cases, their role in comparison with the U.S. dollar and even the euro is limited (Cohen, Benney, 2012;GDH, 2011). Despite the dominance of the U.S. dollar, some changes in the currency order are visible with the rise of emerging markets and a gradual shift towards a multicurrency system centered around the U.S. dollar, the euro, and the renminbi.…”

Section: Current and Prospective International Currenciesmentioning

confidence: 99%

Towards a Global Currency? Condition and Scenarios for Evolution of the International Monetary Order

Jędrzejowska

2014

ECO

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The main goal of the paper is to examine the key features of the current international monetary system and provide an overview of scenarios for the future global monetary arrangements. It is noted that just a few years back there seemed to be a bipolar monetary system based on the U.S. dollar and the euro in the making. The rise of China and the possible emergence of the Chinese renminbi as an international currency gave way to a debate on a tripolar monetary system. Today, the future of the international monetary system is still open. It needs reforming in order to meet the requirements of the new global order with multiple growth centers, the growing role of transnational actors, and the increasing global influence of the major emerging economies.The analysis reveals that the relations among the major international currencies are changing, and today at least three scenarios for the future monetary order seem possible. These are the maintenance of the U.S. dollar domination, a shift towards a multipolar currency order, and the gradual regionalization of the currency order. The concept of a single currency -though theoretically attracting -seems impossible to be implemented in the foreseeable future. The analysis is based on monetary and economic theories, historical patterns of the development of monetary regimes, and an extensive literature overview backed by the data provided by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).

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What does the international currency system really look like?

Abstract: In tern a tional concentration.

Cited by 54 publications

References 12 publications

The Euro: An International Invoicing Currency?

The Euro: An International Invoicing Currency?

The US Dollar's Continuing Hegemony as an International Currency: A Double‐matrix Analysis

Towards a Global Currency? Condition and Scenarios for Evolution of the International Monetary Order

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