Analysis of Currency Internationalization with Trade Structure

DOI

10.2991/icsshe-17.2017.12How to use a DOI?

Keywords

Trade settlement structure, Macroeconomic model, currency internationalization

Abstract

Degree of internationalization of currency can be reflected by the trade structure at the denominating level. This paper established a three-sector macroeconomic model with representative households, enterprises and governments. We introduce import and export trade settlement structure on representative household's revenue and expenditure, dividing enterprises into trade enterprises and non-tradable enterprises, and finally we analyze the influences of the changes of economic subject's main variables on the structure of trade settlement in an equilibrium market. The conclusions of this study are as follows: if the real exchange rate of foreign currency is greater than 1, the growth of the three variables including attractiveness of foreign goods, the elasticity of capital output and the government expenditure will deepen the internationalization of the currency; if the actual exchange rate is less than 1, the three variables take effects on it in a perverse way. In this research the possible reasons of the internationalization of the currency are discussed from the theoretical level, in the end we take RMB for example to explain the process of currency internationalization.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xuefeng Zhang
PY  - 2017/09
DA  - 2017/09
TI  - Analysis of Currency Internationalization with Trade Structure
BT  - Proceedings of the 2017 3rd International Conference on Social Science and Higher Education
PB  - Atlantis Press
SP  - 45
EP  - 48
SN  - 2352-5398
UR  - https://doi.org/10.2991/icsshe-17.2017.12
DO  - 10.2991/icsshe-17.2017.12
ID  - Zhang2017/09
ER  -