Research On The Regional And International Expansion Of Monetary And Financial Territory

In the end of 2007, American subprime crisis broke out, and then relayed the crisis to whole world in 2008. After the Crisis , the United States carried out large-scale stimulate economic policy, the federal reserve started money-making machine, and then the dollar devaluation, this actually a process that the United States allocates continuously crisis cost to the world . From the exchange rate reform of RMB in 2005 until now, the RMB has risen by more than 20% to US dollar. History is always the same, Japan which has a huge trade surplus and then becomes America’s largest creditor was forced to appreciate its currency against the usd after the plaza accord, which makes the Japanese from the 1990s has experienced lost twenty years. Why we cannot change the international monetary system in which dominant currency bring world economic negative externality?The dominant currency drops considerably in its intrinsic value but continue to maintain international status, and why this phenomenon recurring in the history? Understanding these phenomena needs us find the answers from history background of exchange rate system evolution in the facts, reasons and general rules of monetary realizing its its expansion, and which will enlighten us know future development trends of the RMB.The first chapter is about the basic theory and concerning research.The second to fourth chapters of Papers analyzes under the background of different exchange rate system along the international gold standard, the bretton woods system, and theJamaica system.The second chapter explains the evolution and operation mechanism of international gold standard, analyzes the facts and reasons of regional and international expansion of the pond territory under the international gold standard system, In the 1870s, when all countries executed gold standard the ponde established its international monetary system, and then became the dominant currency,its monetary map spread throughout Europe, America, Asia, Africa and so on. The reason that Pounds realize its expansion lies in international economic environment under particular historical background, and the specific performance are: mutual matching pattern of international physical trade and capital flows, coordinating cooperation system in which the central Bank of England be the core of the nationals, and the absolute leadership role of British in international trade.The third chapter explains the evolution and operation mechanism of the bretton woods system, analyzes the facts and reasons of regional and international expansion of the dollar territory under the bretton woods system,dollar established its international monetary system in which it is the dominant currency especially when major western industrialized countries realized its currency freely convertible. Territory of dollar spreads throughout Europe, Asia, Africa, America and Oceania. Using mundell model to illustrate the reason that dollar realizes its expansion: matching structure of the American balance of payments with the demand for dollars in other parts of the world;and the relative higher inflation tolerance in other parts of the world.The fourth chapter continues the same way of the previous two chapters: firstly, explains the evolution and operation mechanism of Jamaica system;secondly,points out that the dollar still continues its expansion trend even after the thoroughly collapse of the bretton woods system;finally,analyzes the reason of this expansion,it is lies in network externalities effect of major currency and interdependence structure of international trade and capital flows.The fifth chapter analyzes regional effects of regional and international expansion of monetary and financial territory from international gold standard, the bretton woods system, to Jamaica system,that is, overestimate and devaluation of pond and dollar influence regional economics and world economics and its differences in different regions under different exchange rate system.The sixth chapter summarizes the previous five chapters to put forward the general rule of international and regional expansion of the monetary and financial territory , and uses intergenerational alternate model of money to further analyze the rule of microscopic determinant.The last chapter firstly illustrates history and current situation of RMB,using the model in fifth chapter to micro determined factors and limitations of international and regional expansion of RMB and then analyzing its developing prospects, puts forward that the renminbi should follow gradual development way of international regionalization.