2008Unpublished venueRequires access

World Reserve Monetary Change Trend and Control

Zhen Wen-zhen

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Abstract

The two obvious characteristics of the world reserve currency are the increasing excessively of the world reserve currency and the structure changing of Euro replacing U.S.dollar gradually and the pound sterling catches up with and surpass the yen from 1999 to 2007.The expanding of the world economy integration degree and international economy business scale lead to the rising of international reserve currency scale,at the same time,the economic growth,monetary policy and exchange rate of the country issuing reserve currency decide its structure changes among the world reserve cur-rency.The increasing excessively of the world reserve currency brings about a lot of negative consequence,but there are two measures which can control effetely the increasing of reserve currency,in a short time,controlling the current account adverse balance of trade and the scale of issuing currency from the country issuing currency;in a long time,the country having no reserve currency holding appropriately reserve currency,making use of reserve currency rationally.

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The two obvious characteristics of the world reserve currency are the increasing excessively of the world reserve currency and the structure changing of Euro replacing U.S.dollar gradually and the pound sterling catches up with and surpass the yen from 1999 to 2007.The expanding of the world economy integration degree and international economy business scale lead to the rising of international reserve currency scale,at the same time,the economic growth,monetary policy and exchange rate of the country issuing reserve currency decide its structure changes among the world reserve cur-rency.The increasing excessively of the world reserve currency brings about a lot of negative consequence,but there are two measures which can control effetely the increasing of reserve currency,in a short time,controlling the current account adverse balance of trade and the scale of issuing currency from the country issuing currency;in a long time,the country having no reserve currency holding appropriately reserve currency,making use of reserve currency rationally.

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Available abstract

The two obvious characteristics of the world reserve currency are the increasing excessively of the world reserve currency and the structure changing of Euro replacing U.S.dollar gradually and the pound sterling catches up with and surpass the yen from 1999 to 2007.The expanding of the world economy integration degree and international economy business scale lead to the rising of international reserve currency scale,at the same time,the economic growth,monetary policy and exchange rate of the country issuing reserve currency decide its structure changes among the world reserve cur-rency.The increasing excessively of the world reserve currency brings about a lot of negative consequence,but there are two measures which can control effetely the increasing of reserve currency,in a short time,controlling the current account adverse balance of trade and the scale of issuing currency from the country issuing currency;in a long time,the country having no reserve currency holding appropriately reserve currency,making use of reserve currency rationally.

Key concepts: Reserve currency, Foreign-exchange reserves, Currency, Special drawing rights, Economics, Monetary reform, Monetary economics, Devaluation

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