Empirical Analysis On Commodities Denominated In Us-dollar And Its Impacts

Ever since the global financial crisis of2008, the contradictions inherent in the US dollar-dominated international monetary system and US economy’s declining percentage of contribution to the world have revealed and have been paid close attention to. The thesis starts with the descriptions of the development of US dollar as an international currency, followed by an empirical analysis of the status and impact of US dollar after the collapse of Bretton Woods system, in order to understand the reasons for the enhanced dollar credit standard after the dollar came off the gold standard. The thesis focuses on the empirical analysis between the US dollar denominated commodities (e.g., crude oil) and the enhancement of the US dollar as an international currency. The theoretical transmission mechanism between commodities denominated in US dollars and its heightened international status is first discussed in the thesis, followed by the analysis of an time-series dynamic regression model on the key factors that would impact the status of US dollar. It concludes that both the inertia in currency use and the major commodities denominated in US dollar have key impacts on the US dollar’s international status.Although the impact factors on US dollar’s international status have been discussed by many researchers, the highlights of the thesis are the quantitative analysis of the empirical factors of US dollar denominated commodities, which improves the theoretical explanations to the dollar credit standard. The thesis would also provide reference to the study on the internationalization of Chinese Yuan.