AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
China versus the United States: IMS Meets IPS
AEA Papers and Proceedings
vol. 109,
May 2019
(pp. 476–81)
Abstract
Currently both the International Monetary System (IMS) and the International Price Systems (IPS) are dominated by the United States. The emergence of China, both as reserve currency and as a currency of invoicing, is likely to disrupt this status quo. We provide a framework to understand the forces that will shape this transition and identify sources of instability. We highlight the risk of an abrupt shift triggered by a run on the dollar.Citation
Farhi, Emmanuel, and Matteo Maggiori. 2019. "China versus the United States: IMS Meets IPS." AEA Papers and Proceedings, 109: 476–81. DOI: 10.1257/pandp.20191057Additional Materials
JEL Classification
- E42 Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
- F31 Foreign Exchange
- F33 International Monetary Arrangements and Institutions
- O11 Macroeconomic Analyses of Economic Development
- O19 International Linkages to Development; Role of International Organizations
- P24 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure; Money; Inflation
- P33 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid