Evolution Of International Monetary Order

International Monetary Order is one of the most important institutions in international trade and finance, including currency institution, reserve institution and exchange rate institution. It is not sufficient for the entire study of the evolution of International Monetary Order. What is the law of the evolution of International Monetary Order? Is the law of the evolution of International Monetary Order matched the "invisible hand" theory posted by Adam Smith? What is the character of every evolutionary statement? And what is the role of China in evolution of International Monetary Order?The thesis constructs a function-feedback frame to analysis the history of International Monetary Order, summarizes the key points of evolution, and proposes the law of the evolution of International Monetary Order:The International Monetary Order could not reach the balanced system within distinctness and embeddedness. The law of the evolution of International Monetary Order is not matched the "invisible hand" theory. According to the law, the evolution of future International Monetary Order may have three statements. One is the sovereign currency embeddedness statement, which still uses sovereign currency as the option of currency institution and reserve institution. The second is non-sovereign currency statement. The third statement mixes the sovereign currency and non-sovereign currency.In the sovereign currency embeddedness statement, International Monetary Order faces the redundancy problem. The rule of the strongest country's currency does not coordinate between domestic currency and global reserve currency. The thesis compose core-periphery model to analysis the current dollar standard system, in which the US current account and finance account cause the structural problem.In the non-sovereign currency statement, there are two modes:free competition money and optimum currency area. The thesis compares two modes with US Free Banking era and European Debt Crisis, especially about the design of mechanism. The result is the the non-sovereign currency statement can control the supply of money to restrain inflation to promote economical development. But the condition is rigorous that International Monetary Order may be more disorder.In the mixed currency statement, the thesis based on the gold and special drawing rights offers a specific plan of the International Monetary Order reform--world currency program. The world currency is used as settlement currency in the current account, while the capital account follows previous exchange rate systems. The exchange rate of world currency is generated by current exchange rate.The thesis compares three paths. The non-sovereign currency statement changes the government's short benefit embeddedness entirely and the condition is the most rigorous. The mixed currency statement is a transition stage. The sovereign currency embeddedness statement is the easiest direction. As long as the government strengthens the short benefit embeddedness, both the non-sovereign and the mixed currency statement will back to the sovereign currency embeddedness statement.Facing three different statements, China will have different status. For China, the best goal will pursue the mixed currency statement. But under the main law of the evolution of International Monetary Order, the only effective step is to seek multi-currency as reserve currency, relieving the Dollar Standard. Wherever the statement of evolution will be, China must advance the internationalization of RMB, which need the reform of exchange rate and finance account.The thesis has three core innovations. First, we elaborate the evolutionary statement of International Monetary Order, entirely analyzing every statement's structure, character and condition. Second, we propose a creative program--world currency program, which causes the International Monetary Oder to get the balanced. Third, we construct a new and understandable theory to explain the law of International Monetary Oder.