Working paper

Global stores of value and the International role of the renminbi

10 Aug 2014
DOI

http://doi.org/10.4225/50/583f54733fc28
Description

We explore the conditions under which a financial asset emerges as a global store of value and can co-exist with a pre-existing (incumbent) store of value. In our model the acceptability of an asset as a global store is driven by the issuing region’s financial development, growth rate, degree of capital liberalization, and by strategic complementarities across investors vying to purchase and sell financial assets. Our model contributes to the debate on the internationalization of the renminbi, supporting the view that deep financial reforms should precede capital account liberalization to sustain the renminbi’s international status over the medium term.

Publication Details
Identifiers: 
DOI: 
10.4225/50/583f54733fc28
Published year only: 
2014
0
Share
Share
Geographic Coverage
Advertisement