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Theories of International Currencies and the Future of the World Monetary Order

Economic Research Institute (82-2-759-4261) 2010.11.18 962
The international standings of currencies form a principal characteristic of the international monetary order, which shapes the world economic and political system by influencing the economic and political relationships among countries. This paper provides a systematic review of the literature on international currencies, encompassing both economics and political science, with the aim of providing a useful groundwork to help develop a better analytical framework for the study of international currency standing. In particular, this paper discusses the international currency concept, the benefits and costs of issuing an international currency, and the determinants of international currency standing. It also assesses conflicting prospects for the future of the US dollar as the world’s key currency. It in addition calls attention to certain domestic political economic factors, as salient issues for the future study of international currency standing.



Contents

 

 

I. Introduction

1

II. The international currency concept

2

III. Benefits and costs of issuing an international currency

4

IV. Determinants of international currency status

8

V. The future of the dollar

12

VI. Some salient issues for further study

17

VII. Conclusions

19

References

21

Abstract in Korean

27

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