THE CONFIGURATION OF THE WORLD’S ECONOMIC POWERS AND ITS INFLUENCE ON CURRENCY STABILITY IN GLOBAL DIMENSION IN 2000-2016
Published: 22 Aug 2017
Abstract: The aim of the paper is to assess the impact of changing configuration of the world’s economic powers on monetary relations, and in particular on ensuring monetary stability. The intensive globalization and high economic growth in China have contributed to the transformation of the economic power system that determines the position of national currencies. Despite these changes, the dollar remains the main international currency and the euro has not reached the position of the global currency effectively competing against the dollar. Moreover, the growing economic potential of China is not reflected in the developing countries’ currencies positions. The analysis makes it possible to conclude that the absence of hegemon power in the global economy weakens the international monetary system stability. If countries form a system of close monetary cooperation to ensure transnational payment liquidity and relative stability of exchange rates in the world, the system would be more efficient and stable.
Keywords: economic power, hegemonic stability, key currency, currency crisis, stability of international monetary system
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