The Current International Monetary System and Global Imbalances

DOI

10.2991/mess-18.2018.13How to use a DOI?

Keywords

International monetary system, Reserve currency, Current account, Global imbalances

Abstract

This paper examines whether the international currency system has contributed to global imbalances. We present an analytical framework concerning two sovereign currencies as a reserve currency system. We find that the current international monetary system is an important reason for global economic imbalances. Within the current international monetary system, it is difficult to solve the problem of reserve currency countries’ current account deficits and global imbalances by adjusting the relative price, interest rates and exchange rates. Moreover, our model shows that the current account surplus of a reserve currency country could alleviate the current account deficit of the other one.

Copyright

© 2018, 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  - Ren-Gui ZHANG
AU  - Hao-Wen FANG
PY  - 2018/04
DA  - 2018/04
TI  - The Current International Monetary System and Global Imbalances
BT  - Proceedings of the 2018 4th Annual International Conference on Modern Education and Social Science (MESS 2018)
PB  - Atlantis Press
SP  - 77
EP  - 83
SN  - 2352-5398
UR  - https://doi.org/10.2991/mess-18.2018.13
DO  - 10.2991/mess-18.2018.13
ID  - ZHANG2018/04
ER  -