Monetary, Financial Internationalization Of Economic And Financial Conduction Study Of The Relationship

Since the collapse of the Breton Woods System, the international monetary system has entered a multi-reserve currency stage. Although the US dollar still dominates the world monetary system and financial activties , other economies have never stopped their endeavors in the international currency competition. In pursuing the status of currency convertibility and internationalization, many economies relaxed financial and exchange control, which in turn promotes the financial globalization. The financial globalization, earmarked by cross border direct investment, portfolio investment as well as debt flows, has been advanced significantly thanks to the integration of developed and developing economies. In progressing the global economic growth and facilitating effective resource allocation, financial globalization also exaggerated the world economy's financialization. The paper, focusing on the international currency competition, browsed relative theoretical and empirical researches on the come-being of international currencies at both micro and macro level, as well as financial internationalization and globalization, their interface with financialization, aiming to inspire further studies in this field, sheding some lights for the course of RMB internationalization.