I. Introduction
Today, the need to manage the world’s dependency on the dollar is an issue that has been recognized and frequently addressed on academic and political platforms globally.1 Ever since the global crisis of 2008, the worst financial crisis witnessed since the 1930s, there has and continues to be a considerable amount of debate amongst not just leading economists but also leading nations across the world, to look towards finding alternatives to the dollar. In the wake of the recent government shutdown, China too, called for a “de-Americanized” new world order.2
In his essay, titled ‘Reform the international monetary system’, Zhou Xiaochuan, the governor of the People’s Bank of China suggested replacing the dollar with the IMF’s Special Drawing Rights, or SDRs, as the world’s new super-sovereign reserve currency (Xiaochuan 2009). Economist Barry Eichengreen, in his book Exorbitant Privilege, however, suggests that the implementation of China’s SDR proposal will remain an unrealized dream. This is because, as Eichengreen points out, China has other plans - “namely establishing the renminbi as an international currency” (Eichengreen 143). This prediction is indeed a current reality, as the Chinese, for the past two to three years, have been actively trying to internationalize their currency. In Exorbitant Privilege, Barry Eichengreen reaffirms this notion and claims that although the future of the Chinese renminbi as a global reserve currency looks possible, China still has a long way to go.
Thus, there is a light at the end of the tunnel, but the light is still far and the journey to the end of the tunnel hasn’t even halfway been realized.
II. The Renminbi As a Future Global Currency
“The challenge (of the Chines...
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...e International Monetary System. Oxford University Press, 2011. Print.
2. Eichengreen, Barry. "The Renminbi as an International Currency." Berkeley.edu. University of California, Berkeley, n.d. Web. 18 Nov 2013. .
3. “Prof Barry Eichengreen on the Prospects for Renminbi Internationalization”. Asian Development Bank. http://www.youtube.com/watch?v=r2BoMhzDfaU. Nov 18th 2013.
4. Schuman, Michael. "Is the Chinese yuan becoming a rival to the dollar?." TIME. (Feb 15, 2011): n. page. Web. 18 Nov. 2013. .
5. Xiaochuan, Zhou. "Reform the international monetary system." Bank for International Settlements. Bank for International Settlements, 23 Mar 2009. Web. 18 Nov 2013. .
The class system has been in place within humanity since the very birth of economic trade. It is a fact of life that others will seek self-betterment and gain power to provide for those that they love and their own personal interest. Throughout the years the implementation of a social class system has helped to differentiate the types of economic situations as nation and serve as a system to work toward the betterment of the society as a whole. However, as the world became more productive and the gaps between the higher classes and lower classes increased the efficiency of the social class system and the decisions made from the individuals within it has been called into question. Kalen Ockerman opened the channel to question if the class system is the helpful institution that benefits of all its citizens or if the lower classes are not getting the support and attention they deem necessary.
Marilyn Frye, a feminist philosopher, discusses the idea of oppression and how it conforms people into gender roles. She claims that it is based upon membership in a group which leads to shaping, pressing, and molding individuals, both women and men.
In 1968, Karl Polanyi argued that ‘ the human economy... is embedded and enmeshed in institutions, economic and noneconomic’. To some extent, this argument can be used to support the issues raised in an article published in ‘the Guardian’. The article was in relation to the slowing down of china’s economy, and the implications that would inevitably affect developing and emerging markets around the world. Polanyi’s argument can assist in understanding why a Chinese slow down has occurred, and the extent in which it will affect global economies. The article raises many questions such as why china’s economy is so important in global economics, and what implications could take place if china’s economy gets worse.
...such methods have led not only to intervallic spikes of high inflation, disastrous devaluations and financial troubles, but also to enduringly elevated nominal and real interest rates. The possibility of devaluation precludes integration into the global financial markets. The power to devalue has not catapulted exports over the longer term. Actually, it is just the opposite. It has seen to locking developing nations into low valued-added products exposed to wide and unpredictable price shifts. The country of El Salvador calculated the pros and cons of having domestic currency through two consecutive administrations and, ultimately, made the choice to dollarize based on their critical examination. Some countries may discover it practical to conduct their own analysis, and others may find it valuable to embrace the monetary services provided by the dollar global economy.
The author of Anatomy of Injustice Raymond Bonner, is a 72 year old investigative reporter for the New York Times. He graduated from McMurray College and earned himself a degree from Stanford University Law School. After being honourably discharged from the U.S Marine Corps, he worked as an attorney at the Public Citizen Litigation Group. Followed by his role as director of consumer fraud white collar crime unit of the San Francisco District Attorney's office ('Lyons Award Goes to American Journalist', 1996).
Dollarization is the replacement of a country’s domestic currency with that of a foreign currency. Dollarization has occurred in several countries including, but not limited to, Panama, El Salvador, and Ecuador. For countries with volatile currencies, dollarization offers them the ability to stabilize their economy. While dollarization has its pros, it is not without its cons, and for Ecuador, this is no exception. In my initial discussion, I believed that dollarization was a positive move for Ecuador; I still feel this way, and now that I have gained a bit more knowledge concerning the macro economy system, I understand how dollarization aided in Ecuador’s economy to stabilize. However, with all the positives associated with Ecuador’s adoption of the dollar, there are negative aspects as well, and there is no indication of how Ecuador will fair in the long run. In addition, the implications are not limited to the dollarizing country alone; there are pro et contra to the United States and the economies of countries surrounding Ecuador.
“The currency is gone; it is being sold off very quietly, worldwide, by the oil producing states, by China …” (Watson)
Mufson, S. (1998) “China not Going to Devalue Currency , U.S. Official Says”, Washington Post, A17.
phrase could be compared with that of the dark tunnel that has a bright light at the end, that light
Jeffrey Reiman, author of The Rich Get Richer and the Poor Get Prison, first published his book in 1979; it is now in its sixth edition, and he has continued to revise it as he keeps up on criminal justice statistics and other trends in the system. Reiman originally wrote his book after teaching for seven years at the School of Justice (formerly the Center for the Administration of Justice), which is a multidisciplinary, criminal justice education program at American University in Washington, D.C. He drew heavily from what he had learned from his colleagues at that university. Reiman is the William Fraser McDowell Professor of Philosophy at American University, where he has taught since 1970. He has written numerous books on political philosophy, criminology, and sociology.
The massive increase in the Chinese trading relations was fueled by the United States in the year 1979 through the normal trade relations between the two countries. In addition, the Chinese non-concession to the World Trade Organization (WTO) in the year 2001 also facilitated its trading activities with different countries including the United States (Kaplan, 57). However, trading relations with the Chinese have been uneasy resulting from the massive trade imbalances in the recent past, which grows exponentially. The protectionist policies of the United States especially in Washington and Beijing have been putting pressure on the Chinese to revalue their currency as well as protecting it from counterfeits, which may be of adverse effects to the trading relations. This paper gives a comprehensive discussion on the foreign trade relations with china. It further gives an elaborate discussion on the impacts of foreign tr...
“Without Conscience" by Robert D. Hare is one aimed towards making the general public aware of the many psychopaths that inhabit the world we live in. Throughout the book Hare exposes the reader to a number of short stories; all with an emphasis on a characteristic of psychopaths. Hare makes the claim that close monitoring of psychopathy are vital if we ever hope to gain a hold over Psychopathy- A disorder that affects not only the individual but also society itself. He also indicates one of the reasons for this book is order to correctly treat these individuals we have to be able to correctly identify who meets the criteria. His ultimate goal with the text is to alleviate some of the confusion in the increase in criminal activity by determining how my of this is a result of Psychopathy.
Xingzhong, LI Daokui David YIN. "The International Monetary System in the Era of Post-Financial Crisis: What Policy Options Does China Have?[J]." Journal of Financial Research 2 (2010): 005
Despite the fact that recent reports have shown that the Chinese currency is currently facing descending pressures, it is, however, likely to improve in the future because of the enhanced terms of trade, current account surplus that is growing, and high net saving. Another reason that will make the Chinese RMB to do well in the future it is because the currency has solid fundamentals and the economy of the country is significantly increasing at a higher rate than the GDP rates. Due to the growing Chinese economy to being the second largest economy, the Chinese currency yuan has been acknowledged by the International Monetary Fund (IMF) as a major global
Ng, Teddy. “Rise of China’s Military and Economic Power Leaves the Rest of the World Wary.” South China Morning Post. South China Morning Post Publishers. 20 Sep 2012. Web. 10 Mar 2014.