We analyze prospects for the Chinese renminbi to become a major international currency, along with the US dollar, in a multiple reserve currency world. Analytical models on switching costs in networks and on currency choice under direct and indirect transaction costs are used to derive variables...

This paper uses the fourth generation of Bi-Directional Reiterative Truncated Projected Least Squares (BD-RTPLS4) to estimate the dollar change in exports due to the accumulation of an additional dollar of foreign reserves, ∂(exports)/∂(foreign reserves), for Australia, Bangladesh, China,...

Currency devaluation resembles subsidy and dumping in terms of its impact on global trade – it grants price advantages to exporting companies. Unlike subsidy and dumping, however, multilateral regulation of currency manipulation, which is principally exercised by the IMF, is far from...

The accelerated expansion of China’s trade and current account surpluses since 2004, and the associated expansion of China’s foreign exchange reserves in the context of very rapid investment-driven domestic economic growth and adverse movements in China’s terms of trade have led China’s...

China's infrastructure-based Belt and Road Initiative (BRI) is challenging the US-led Western International Economic Governance Order (hereafter the Western order) that has been in place since the end of World War II, reflecting a global shift in power and influence from the United States to...

The working paper concerns the EU-China Comprehensive Agreement on Investment (CAI) and its climate provision. It addresses the “When”, “Where”, and “How”. The “When” concerns when the CAI may enter into force. The paper provides an overview of some of the current issues that may...

While most economists are in agreement that China’s currency is undervalued, economists are less certain as to the effect of the undervaluation. Despite the equivocal data, critics of China’s regime claim that the undervaluation leads to cheaper, and therefore increased exported goods, while...

During the 1997/98 Asian crisis and the 2007-2010 world financial and economic crisis, China has proved to be a stabilizer for East Asia and the world. The paper stresses the crucial role of the dollar peg for macroeconomic stability in China. The paper explores the current role of China's...

The COVID-19 pandemic is considered the most serious health crisis and the greatest challenge to humankind since the Second World War. Although countries in East and North-East Asia (ENEA) were the first to be hit by COVID-19, they have so far been successful in controlling the outbreak with...