Studies On Monetary Cooperation Between China And Euro Zone

The development of international currency in politics of international currency has in recent years caught much research attention.A national currency that flows across the national border and becomes the international currency in accounting,settlement and reserve needs both the political support of the issuing state and other countries’endorsements.Although the final step for being the real international currency absolutely depends on market strength,we especially focus on the political factors from the perspective of IPE.And studies on issuing state’s policies and other countries’reaction is critically significant to the understanding of Renminbi Internationalization and its future.Based on the perspective of Negotiated Currency and policy inducements,the issuing state will attract others’ support on their currency by policy inducements,while the potential follower-states will respond these inducements based on their own condition and needs.Domestic political regimes and economic/financial needs would affect the way of potential follower-states to respond the policy inducements.This thesis works on the political reactions of Euro zone to RMB internationalization,where various currency decision-making bodies have established similar RMB arrangements with China.By taking advantage of content analysis,semi-structured interviews and case studies etc.,the high economic interdependence between China and Europe led the establishment between ECB and PBoC,and member states such as France based on its own interest has to a large extent pushed the internal decision-making process within ECB.Regarding Sino-German monetary cooperation in the context of federal regime,the Hessen state has been endowed with enough autonomy and power in achieving its own benefits in RMB cooperation.Due to the realities of great contribution of real economy to domestic economic growth,federal government has less valued the German financial market and international financial hub’s development.That is why the Hessen government has been the leading promoter in the German-Sino monetary cooperation while federal government has only played a less impressive role.To Sino-French cooperation,due to French more centralized administration,the central government has played a major role during the cooperation process since France intended to promote Paris International Financial Center’s status,finance domestic economy and overcome social instability by introduction of RMB business.While for Luxembourg as a competitive IFC,Luxembourg desired for financial diversity in order to lower its financial vulnerability in the aftermath of global financial crisis.All actors including the Duke and Finance minister have been committed to achieve the establishment of RMB arrangements.By employing case studies of ECB-PBOC,Sino-German,Sino-French and Sino-Luxembourgish monetary cooperation,this thesis highlights the differentiated motivations and cooperation processes under the influence of distinct economic models and political regimes.The study is much of significance in theoretical and practical context,especially from the side of policy practice,the monetary cooperation experience in Europe could also be further extended to the regional practice of RMB Internationalization promotion in the context of One Belt One Road Initiative.