In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy … optimal exchange rate policy by modelling the central bank as a Ramsey planner. Our main result is that in a growth … acceleration episode it is optimal to have an initial real depreciation of the currency combined with an accumulation of reserves …

, the euro and the Chinese renminbi (RMB). It focuses on what we call China’s" dominance hypothesis", i.e. whether the … renminbi is already the dominant currency in Asia, exerting a large influence on exchange rate and monetary policies in the … international monetary system is already tri-polar. However, we also find that China’s currency movements are to some extent …

theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking …

. Recent research argues that models with persistent growth rate shocks and recursive preferences can solve that puzzle. I show …

symmetry to domain over which the central bank can vary its policy rate. They are: (1) abolishing currency (which would also be … a useful crime-fighting measure); (2) paying negative interest on currency by taxing currency; and (3) decoupling the … numéraire from the currency/medium of exchange/means of payment and introducing an exchange rate between the numéraire and the …

examine, based on regressions for a 61-country panel, the implications for economic growth and resource allocation of allowing …