The Current International Monetary System Reform And China’s Countermeasures

Economic development is vitally interrelated with a good monetary system. Specifically, theorganized movement of international capital, the commercial trade transactions and the balanceof international payments are all subject to a well-organized international monetary system.After the Bretton Woods System collapsed,"the Jamaican System" took the stage of history.But this period of history is marked with the excess issuance of the U. S. dollar, global excessliquidity and the disordered exchange rate arrangements.The international monetary system isactually caught in a disorderly and chaotic state and in need of an well-organized operationalmechanism and environment. The current economic situation means that it is imperative toreform the existing international monetary system: although the implementation of quantitativeeasing policy by developed economies brought about some positive effects in the short term,but it also further exacerbated the depreciation of the U. S. dollar and the global excess liquidity,which made global imbalance even worse and drove capital to flock to emerging marketcountries, resulting in imported inflation and the risk of economic bubbles. Besides, theeconomic system under which the United States and other “core countries” of the internationalmonetary system implemented “de-industrialization” and “economic virtualization”, whileChina and other “peripheral countries” provided goods and services to the “core countries”,can not help global economy achieve balanced growth.This paper, starting from the basic contents of the international monetary system, conductsdeep research on the main drawbacks, stability, future development trends and the reform pathof the current international monetary system. Finally, the paper provides appropriate policyadvice about what China should do to participate in the reform of the international monetarysystem.