Research On The Realization Of Monetary Power In The Process Of RMB Internationalization

Monetary power is a manifestation of the power of great powers,and only a powerful country can create a powerful currency.As the most typical manifestation of monetary power,the U.S.dollar has established its dominant position in the international monetary system by virtue of the strong comprehensive national power of the United States,and the U.S.has consciously used the international status of the U.S.dollar to obtain excess returns,making the world under the control of U.S.dollar hegemony.As a rising power,China’s international status has long been mismatched with China’s comprehensive national strength.Pursuing the realization of RMB monetary power is not to pursue hegemony,but to resist and balance the urgent need of the current dollar hegemony.Realizing the monetary power of RMB that matches China’s national strength is an important link in China’s future development.What is the relationship between the process of currency internationalization and the realization of monetary power? How to realize the monetary power in the current process of RMB internationalization? These issues are not only major theoretical issues,but also realistic issues that need to be resolved in earnest at present.The internationalization of the RMB is closely integrated with the realization of the RMB monetary power,and an in-depth study and analysis of the trend of the RMB internationalization in China entering a stage of high-quality development in the future will be conducted from the perspective of the realization of the monetary power.First,build a theoretical analysis framework for the realization of monetary power from the perspective of power,distinguish and judge different attributes of monetary power,and explain and analyze the source,connotation,characteristics and performance of monetary power.After analyzing the hegemony of the US dollar as a case study put forward the necessity and urgency of realizing the power of RMB currency;Second,the important factors affecting the realization of monetary power are divided into five dimensions: economic strength,financial strength,political strength,military strength,and technological strength.Select 8 major world currencies and their issuing countries/regions to represent the five dimensional indicators of national strength,respectively construct a currency internationalization index representing currency functions and a country’s comprehensive strength index represented by power,and look for factors affecting currency internationalization.According to the calculated currency internationalization index and the country’s comprehensive strength index,we will construct a panel model for empirical analysis,identify the country’s comprehensive strength factors that affect the internationalization of the RMB,and analyze its influence mechanism;Third,construct a structural equation model to measure the RMB monetary power index,and further analyze the relationship between the realization of RMB monetary power and the internationalization of the RMB.Construct the RMB Monetary Power Index through model parameters,further judge the relationship between RMB internationalization and the realization of RMB monetary power,and find that the RMB Monetary Power Index has a good predictive effect on the RMB internationalization index;Finally,it constructs a game model for the realization of the monetary power of the RMB,and proposes the dominant strategy for the realization of the monetary power of the RMB in the international monetary system at the current stage.The path to realize RMB monetary power in the future is to promote the internationalization of the Digital RMB,expand the functions of the RMB currency,and enhance the country’s comprehensive strength,and propose corresponding countermeasures and suggestions to promote the realization of the RMB monetary power.