Reserve Currencies: Can Multiplicity Work?
Published By: Indira Gandhi Institute of Development Research | Published Date: March, 01 , 2014The paper analyzes the potential rise of new reserve currencies in the context of the economic and
political determinants of an international currency. Two models analyze the role of soft political power,
switching costs to a new currency and transaction costs in the rise of a new currency. Quantitative
indices are developed to measure these factors, which are then empirically tested and found to be
statistically significant in determining the rise of international currency. The study further explores the
greater use of Renminbi in East Asia and the trade integration in this region.
Author(s): Ashima Goyal, Satyendra Kumar Gupta | Posted on: May 02, 2016 | Views()