The current international
monetary system has critical defects. An effective reform of the system calls
for a new international currency, for which the Renminbi may be a promising
candidate. Despite the rapid growth of the Chinese economy, certain prerequisites
have to be satisfied before the Renminbi can be internationalized. China needs
to ensure full convertibility of the Renminbi and further develop its financial
markets to facilitate the process of internationalization.
This course will discuss various
aspects of the Renminbi internationalization. Specifically, innovative
suggestions will be provided on topics including the reform of the
international monetary system, the opportunities and challenges of the Renminbi
internationalization, and the evolution of China’s monetary and exchange rate
policies. Since the internationalization of Renminbi is important to the future
of Hong Kong as an international financial center, the lectures will also
discuss the possible implications of this process for Hong Kong.
Week 1: The Role of the Renminbi in the
International Monetary System
The lecture will commence with a
review on the roles of money in the domestic and international monetary
systems. Upon analyzing the critical defects of the international monetary
system and the necessity of reform, we will discuss the global governance and
institutional reform of the international monetary system. An assessment on the
costs and benefits associated with the internationalization of the Renminbi for
the system will conclude the lecture.
Week 2: Internationalization of the Renminbi and
Renminbi Offshore Markets
This lecture will address the
following questions: What are the aims of internationalizing the Renminbi? What
analytical framework can we adopt to draft proposals on the possible process of
Renminbi internationalization? For China, what are the costs and benefits of
establishing Renminbi offshore markets? How can the risks to monetary and
financial stability be managed prudently? What are the implications for other
areas, particularly Hong Kong?
Week 3: The Monetary and Exchange Rate Policy of
The lecture will begin with an
analysis on the approaches, instruments, and intermediate targets of China’s
monetary policy. The legal framework of monetary regulation, the role of the
central bank, and the objective of monetary policies will then be elaborated,
followed by a brief discussion on the interest rate and exchange rate
liberalization. The lecture will then proceed to review the monetary policy stance
of the People’s Bank of China over the years and discuss the recent experience
of monetary policymaking in China.
Week 4: The Future of Hong Kong’s Monetary System
This lecture will focus on the
monetary system of Hong Kong. We will review the history of Hong Kong’s
monetary policy and monetary control, thus revealing how the monetary system of
Hong Kong has been designed to serve the public interest most effectively and
maintain Hong Kong as an international financial center. The lecture will
conclude with a discussion on the future of the Linked Exchange Rate System,
which has served Hong Kong well for almost 30 years.
Start your review of The Role of the Renminbi in the International Monetary System
John Hunt completed this course.
This went over my head a bit. It's a subject I'm extremely curious about. But at the end I felt I had a lot of detail, but still didn't get a clear sense of the big picture. The exam was refreshingly strict - one-chance-only, and timed. In retrospect I could have spent that time better, and understood the topic as well from Wikipedia. But that's me.....
IMHO, only for people with a very serious interest in this specialist topic.