Index
- A
- Abe, Shinzo, 36
- Absorption channel, 71
- ABSs. See Asset-backed stablecoins
- Action Plan for Yangtze River Delta (YRD) Regional Integration, 180
- AHMU. See Austro-Hungarian Monetary Union
- AIIB. See Asian Infrastructure Investment Bank
- Algorithmic stablecoins, development, 209
- Allocated foreign reserves, currency basis, 230f
- Altcoins, 213
- Alternative algorithms, developments, 215
- Altmaier, Peter, 36
- “America First” (Trump), 6
- China Dream, contrast, 13–18
- AML/CFT. See Anti-Money Laundering/Counter-Financing of Terrorism
- Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER), 234
- Anti-authoritarianism, rise, 225
- Anti-globalization campaign (1999), 103
- Anti-money laundering, 247
- Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT), 255
- Anti-multilateralism, 78–81
- Anti-sovereign movement, 78–81
- Apple Inc. share price, north Asia exports (relationship), 30f
- AREAER. See Annual Report on Exchange Arrangements and Exchange Restrictions
- Argentina, capital flows, 90f
- Armadollar-Petrodollar Coalition, 73
- Asian Development Bank, China underrepresentation, 136
- Asian Financial Crisis (1997), 101t, 116–117
- Asian Infrastructure Investment Bank (AIIB), establishment, 136
- Asset-backed stablecoins (ABSs), 207–209
- Assets, digital currencies (comparison), 216
- Assets under management (AUM), 177
- Austro-Hungarian Monetary Union (AHMU), 97
- B
- Baidu, Alibaba, Tencent (BAT), 168
- Balance-of-payment (BOP), 230
- Balance-of-payment (BOP) deficits, 64–65
- Balance of Payments and International Investment Position Manual Sixth Edition (BPM6), 231, 233, 238, 240
- Bank Charter Act of 1844, 239
- Bank for International Settlements (BIS), trade/financial openness, 80
- Bank of Canada, 243
- Bank of England, 227, 239, 242–243
- exchange reserves deposits, 91–92
- Bank of Japan, 243
- Barings Bank Crisis (1890), 102t
- Barro, Robert, 159
- BAT. See Baidu, Alibaba, Tencent
- Belt and Road countries
- Belt and Road Initiative. See China
- Berlin Wall, fall, 86–87
- Bernanke, Ben, 68–70, 75
- Beryl Datura Investment, 148
- Biden, Joe, 33
- Bilateral local currency swap agreements, 131–132
- Bilateral trade
- Bimetallism, US adoption, 93
- Bitcoin, 197
- Bitcoin Cash, 213
- Bitfinex, loan, 207–208
- “Black gold” regime, 72–73
- Block
- Blockchain
- basics, 197–204
- business executive survey, 198f
- corporate/government spending, IDC forecast, 197–198
- decentralization, 211
- defining, 198
- design, scale constraints, 211
- disruption, 195–196
- monetary policy, implication, 223–226
- nodes, 201
- public blockchain, attacks, 211
- system, bank usage (absence), 220
- transaction fee, 214f
- transaction process, 201f
- trilemma, 213–214
- World Bank definition, 199
- Bloomberg Barclays Global Composite Index, 143–144
- Bond Connect, 142
- Bond market (China), foreign investment, 143f
- BOP. See Balance-of-payment
- BPM6. See Balance of Payments and International Investment Position Manual Sixth Edition
- Brainard, Lael, 247
- Brazil, Russia, India, and China (BRIC), 78, 89
- Bretton Woods, 65
- Bretton Woods Agreement (1944), 65
- Bretton Woods Conference (1944), 114
- outcome, 46–47
- BRI. See China
- BRIC. See Brazil, Russia, India, and China
- Britain, capital flows, 90
- Business cycle, factor, 52
- Buterin, Vitalik, 200
- Buttonwood, SAFE establishment, 153
- Byzantine Generals Problem, 213
- C
- Canada, capital flows, 90f
- Capital
- Capital account
- Carney, Mark, 227, 228, 242
- Carry trade positions (covering), shorts (usage), 121
- CBDC. See Central Bank Digital Currency
- CCF. See Counter-cyclical adjustment factor
- Central Bank Digital Currency (CBDC), 221–223
- Centralized network arrangement, 200f
- CFETS. See China Foreign Exchange Trading System
- CGB. See China Government Bonds
- China
- 5G connections, projections, 182f
- current account balances, 16f
- current account surplus, ranking, 50
- activity indices, 156
- assets, alternatives, 148–155
- balance of payments
- Belt and Road Initiative (BRI), 17, 36–38, 109, 184
- country profile, 38t–39t
- bond market, foreign investment, 143f
- cashless society, conversion, 240
- China-US financial decoupling, 111
- competitive devaluation, impact, 12
- credit sector, GDP percentage, 163f
- cross-border capital flow, increase (allowance), 112–113
- cross-border flow, US dollar foreign currency dominance, 76
- cross-border payment (RMB), 141f
- cross-border RMB payments, 141f
- currency manipulator
- currency outlook/reforms, 124–129
- data connectivity, importance, 184
- de-dollarization process (acceleration), 254
- deficit, size, 7–10
- demographic challenge, 159–165
- digital economy, 168–184
- digitalization
- Digital Silk Road expenditures, 185f
- digital transformation
- advantage, 172
- push. See Global monetary regime.
- domestic capital market, foreign access liberalization, 144
- double-digit GDP growth rate, economic miracle/curse, 159, 162
- economic efficiency, improvement, 165
- economic impacts/consequences, 26–33
- economic miracle (nickname), 159
- economic power, growth, 238
- electronic payments, mobile device numbers (impact), 171f
- exchange rate policy, US description, 22
- exchange rate reform, stages, 123–124
- exporters, ranking, 24f
- factory-dollar recycling, 73–77, 154–155
- fiscal system, strengthening, 126
- floating regime (2005-2015), 117–118
- foreign company technology transfer (EU complaints), 188
- foreign earnings accumulation, 74
- foreign exchange (FX)
- foreign ownership restrictions, usage, 12
- GDP growth gap, 162, 163f
- GDP, digital sector, 169–170
- GDP per capita, 16f
- “go green” opportunity, utilization, 126
- goods, US tariff rates (imposition), 22f
- gross national savings (nominal USD), 75f
- import tariffs, 16f
- excess (US accusation), 10
- inflation, 164f
- information technology (IT) industry, GDP, 170f
- innovation, pace (acceleration), 126
- intellectual property rights (IPR), protection (absence), 12
- labor force, 162f
- life expectancy, GDP per capita (relationship), 166f
- manufacturing sector, trade war (impact), 174–175
- market accession, foreign investor complaints, 11–12
- middle income trap, 158
- avoidance, World Bank report recommendations, 126
- miracle, 79
- MNC presence, 79–80
- mobile device penetration, 169f
- mobile network, data traffic, 174f
- mobile payments, transaction volume (PBOC data), 171
- national saving, 75f
- national savings rates, 15f, 162f
- network, rate of return (estimation), 183–184
- official statements, 39–42
- oil/semiconductor imports, contrast, 192f
- outward direct investment, 128f
- overleveraging, 159–165
- Phase One agreement, 45
- population pyramid, 161f
- property prices, 164f
- real effective exchange rate, 57f
- reforms (transitional period), 115–117
- research, data reliability, 157
- reserve-currency status, acquisition (difficulty), 109–110
- reserve management, 154
- reserve requirement ratio (RRR), 162, 163f
- reserves, sources/investments, 149t
- self-sufficiency belief, 158
- semiconductor market, consumption/production comparison, 190f
- shock, 79
- social security, expansion/promotion, 126
- South Korea exports, 30f
- sovereign wealth, 151t–153t
- staff/workers, average wage (NBS data), 160
- state-owned financial institutions, equity capital provision, 150, 153
- structural challenges, 159–167
- structural rebalancing, digitalization (relationship), 168–177
- structural reforms, implementation, 126
- supply-side structural reforms, 165–167
- systematic investment/acquisition, 13
- technology-led development model, usage, 166
- technology policy, 177–184
- threat theory, 14–15, 130, 136
- total factor productivity, 127f
- total FX reserves, total US dollar assets percentage, 147
- total labor force, number/annual change, 160f
- trade practices, Section 301 Investigation (Trump order), 12–13
- trade truce, 44
- transitional period (FX reforms), 115–117
- unauthorized intrusions/theft, 13
- unfair competitive advantage creation, IMF elimination, 61
- United States
- urbanization, impact, 173
- US-China bilateral trade, tariff increases (effects), 28f
- US government securities holding, 76f
- WCC-denominated government securities, issuance (increase), 254
- weak segments, repair, 165
- world GDP, PPP basis, 14f
- world relations, search, 126
- China 2030 (Development Research Centre/World Bank), 16, 126
- China Academy of Information and Communications Technology (CAICT)
- China Development Bank, 153
- China Dream, 178
- America First, contrast, 14–18
- China Foreign Exchange Trading System (CFETS), 116
- China Government Bonds (CGB), issuance, 142, 238, 254
- China Huaxin, holding company, 153
- China Interbank Bond Market (CIBM), 142
- China Investment Corporation (CIC)
- China Mobile, 168
- China renminbi (RMB)
- deposits (Hong Kong), 137f
- exchange rate, 62f
- globalization, 129–144
- global payment currency share, 139f
- index, USD/CNY spot rate (relationship), 120f
- international acceptance, promotion, 114
- internationalization, 109, 131–144
- net RMB inflows, 142
- offshore centers, establishment, 137–140
- offshore RMB clearing banks, 133t–134t
- offshore RMB markets, 139f
- real effective exchange rate, 125f
- reserves, central bank holding, 136f
- usage
- Churchill, Winston, 93, 106
- CIBM. See China Interbank Bond Market
- CIC. See China Investment Corporation
- CIS. See Commonwealth of Independent States
- CNH-denominated bonds (Dim Sum bonds), 138
- CNY denominated assets, attractiveness (enhancement), 142–143
- CNY-denominated investment grade financial instruments, 140
- CNY-WCC convertibility, support, 263
- Coinage Act. See United Kingdom; United States
- CoinMarketCap, listings, 207
- Cold War, 35, 86
- Collusion attacks, 211
- Common Monetary Area (CMA), 95
- Commonwealth of Independent States (CIS), 5G connections, projections, 182f
- Commonwealth territories, currency (pegging), 91–92
- Competitive devaluation, impact (China), 12
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership, 7
- Comprehensive Pilot Zone, development, 178, 180
- Consumer price index (CPI), 157
- Consumer protection, 247
- Containment, doctrine, 35
- Convertibility, nurturing, 131, 134–136
- Coronavirus, dollar shortage (relationship), 102t–103t
- Corporate America, greenfield, 78
- Counter-cyclical adjustment factor (CCF), 122–123
- Counterfeit resistance, cryptocurrency issue, 241
- Country-based economic theory, 53
- Country-specific import tariff, response, 31
- CPI. See Consumer price index
- Created in China, 165, 192
- Credit creation, cryptocurrency capacity (question), 218–220
- Cross-border capital flow, increase (China allowance), 112–113
- Cross-border control, tightening, 121–122
- Cross-border flow, support, 139–140
- Cross-border net payment (USD), 76
- Cross-border payments, 141f, 233
- Cross-border transactions, liberalization/deregulation, 138–139
- Crude oil first purchase price, 51f
- Crude oil price, doubling, 51
- Cryptoassets, life cycle (shortness), 205
- Cryptocurrency
- bubble, belief, 221
- capacity, question, 218–220
- CBDC, difference, 243–244
- challenges, 195–196
- counterfeit resistance issue, 241
- development, 37
- e-commerce acceptance, 247
- equal opportunity, 241–242
- Libra Project, implication, 244–248
- lifespan, shortness, 205–206
- market, 204–210
- capitalization, ranking, 205t
- money
- non-sovereign issue, 242
- payment medium, question, 215–218
- people's money, relationship, 194
- price volatility obstacle, 206
- regulatory responses, 220–223
- role, potential, 238–244
- supply, scarcity issue, 240–241
- Currency
- domain, national sovereignty expression, 96
- domestic currency, definition, 233
- exchange, 220
- foreign currency, net purchases (repetition), 61
- globalization, 89–93
- global payment currency, RMB share, 139f
- manipulator, designation, 60
- market, stabilization (PBOC intervention), 113
- outlook/reforms, 124–129
- reserve currency, liquidity basis, 229–238
- revaluation, 56–59
- standard, trade bloc (relationship), 93–98
- term, understanding, 233
- trade, link, 46–48
- union
- Currency bloc
- Current account Triffin, 64–65
- D
- Dapp, 204–205
- Data connectivity, importance, 184
- DC/EP. See Digital Currency/Electronic Payments
- DDoS. See Distributed Denial of Service
- Decentralization. See Bitcoin
- Decentralized network arrangement, 200f
- De-dollarization
- Deficit balance, persistence, 49
- de Gaulle, Charles, 65
- Deglobalization
- Delivery risk, 199
- Demographic Revolution, 82
- Deng, Xiaoping (open door policy), 15, 79, 86–87, 115
- d'Estaing, Valéry Giscard, 65
- Didi Kuaidi, merger, 177
- Digital Adoption Index (World Bank), 168
- Digital currencies, assets (comparison), 216
- Digital Currency/Electronic Payments (DC/EP), development, 243
- Digital economy (China), 168–184
- Digitalization
- Digital Silk Road, China expenditures, 184, 185f
- Digital technology, race, 156
- Dim Sum bonds, 138, 234
- Disintermediation, 208
- Distributed Denial of Service (DDoS) attack, 211
- Distributed ledgers, usage, 197–210
- Distributed ledger technology (DLT), 204, 223
- Distributed network arrangement, 200f
- DLT. See Distributed ledger technology
- Doha Round (negotiations), WTO progress (absence), 79
- Dollar. See United States Dollar
- Domestic capital market, foreign access (China liberalization), 144
- Domestic currency, definition, 233
- Domestic price rigidity, 57
- Dutch East India Company, 81
- E
- E-commerce business, big data (impact), 172
- Economic and Monetary Union (EMU), 252
- Economic impacts/consequences, 26–33
- Economic principles, basis, 26
- Economies, collateral damage, 29–30
- EEA-China trade bloc, 36
- Electronic coin, creation (steps), 202
- Electronic payments
- Emerging Market Bond Indexes, 144
- Emerging market (EM) currencies, 207
- EMU. See Economic and Monetary Union
- “Entity List,” 186, 188
- “Unreliable Entity List,” 23–24
- Ether (coin), 203–204, 217
- blockchain feature, 204–205
- Ethereum, 200, 203
- contract feature, 219
- Euro, currency idea, 94
- Eurodollar market, CNH market (comparison), 138
- Europe, 5G connections, projections, 182f
- European Central Bank (ECB), 243
- foreign reserves, 238f
- European Economic Community (EEC), 87
- European Fiscal Compact, 97
- European Sovereign Debt Crisis, 50, 103
- European Union (EU) members, exchange rate regimes, 95f
- Exchange rate
- Exorbitant privilege. See United States Dollar
- Export competitiveness, decline, 63
- Export-Import Bank of China, 153
- F
- Facebook. See Libra Project
- Factory-dollar recycling (China), 73–77, 154–155
- FATF. See Financial Action Task Force
- FDI. See Foreign direct investment
- Federal Open Market Committee (FOMC), 47, 66, 224
- Federal Reserve. See US Federal Reserve
- Fiat money regime, 66, 94
- Financial Action Task Force (FATF), 221
- Financial crises
- Financial deglobalization, 98–104
- Financial deleveraging (China campaign), 165
- Financial engineering, downside risk, 100
- Financial institutions, market access (WTO promotion), 195
- Financial integration
- Financial liberalization, 11–12
- Financial market
- Financial stability, achievement, 67–68
- Financial system, interaction, 220
- Fintech, impact, 176
- First Industrial Revolution, 82
- Fletcher School Digital Evolution Index, 168
- Floating regime (2005-2015), 117–118
- FOMC. See Federal Open Market Committee
- Forced technology transfer, 186–188
- Foreign companies, technology transfer (EU complaints), 188
- Foreign currency
- Foreign earnings, China accumulation, 74
- Foreign exchange (FX)
- Foreign goods, influx, 85
- Foreign ownership restrictions, usage (China), 13
- Foreign reserves
- Foreign trade, perspective, 104
- Forks. See Bitcoin
- Forward position, reserve requirement (PBOC imposition), 122
- Foxconn. See Hon Hai
- Frankel-Wei regression, 136
- Free trade
- Free Trade Units (FTU), establishment, 140
- Free Trade Zones (FTZs), launch, 138–140
- Fundamental disequilibrium, repair, 65
- Fund raising (blockchain system), 220
- FX. See Foreign exchange
- G
- G10 currency, trading, 229–230
- GCC. See Gulf Cooperation Council
- General Agreement on Tariffs and Trade (GATT), 87
- Genoa Conference (1922), 114
- Geopolitical issues, leverage, 25–26
- Germany
- GFC. See Global Financial Crisis
- Gingko Tree Investment, 148
- Global 5G coverage, GSMA projection, 181
- Global bond markets, 143f
- Global exchange rates, repair, 65
- Global finance, blockchain (disruption), 195–196
- Global Financial Crisis (GFC), 15, 49, 54, 102t, 250
- Global foreign reserves, 235f
- Globalization, 166–167
- change, impact, 3
- cross-border financial crises, 101t–103t
- currency globalization, 89–93
- cycle, 81–86
- political-economic perspective, 88t
- deglobalization, 33–37, 78
- function, understanding, 4
- G20, impact, 3
- involvement, 53
- opinion, 104
- period (1820-1914), 81–86
- postwar globalization, 86–89
- Second Globalization, stages (World Economic Forum separation), 86–87
- US dollar symbol, 80
- waves, 81–86, 91–92, 105
- Globalization-dollarization cycle, impact, 80
- Global monetary regime, digital transformation (China push), 253–256
- Global payment currency, RMB share, 139f
- Global reserving, cryptocurrency role (potential), 238–244
- Global savings
- Global Standard Index, 142
- Global supply chains, threat (accusations), 78–79
- Global System for Mobile Communications Association (GSMA), global 5G coverage projection, 181
- Golden Flowers, 148
- Gold exchange standard
- Gold Standard
- Government bond yields, coupon rates (reduction), 94
- Great Britain, 19th century success, 26–27
- Great Depression, 86
- Greenback
- Gross domestic product (GDP)
- Gross national savings (nominal USD), 75f
- GSMA Intelligence, smartphone connection data, 173
- Gulf Cooperation Council (GCC)
- H
- Hashcash system, 202
- Herstatt risk, 199
- Hong Kong
- Hong Kong Dollar (HKD)
- Hong Kong Monetary Authority (HKMA), 59, 138
- interest rate decisions, 58–59
- Hon Hai (Foxconn), exports, 24–25
- Huawei, 168
- Hu, Jintao (US-China Economic and Strategic Dialogue establishment), 7
- Human labor (replacement), digitalization (impact), 175
- I
- IBRD. See International Bank for Reconstruction and Development
- ICO. See Initial coin offering
- ICT. See Information and Communications Technology
- Imports
- Impossible trinity (Mundell theorem), 94, 99, 113
- Income effect, 175
- Industrial Revolution (illustration), 82f, 86
- Industry 3.0, computers (introduction), 167
- Industry 4.0, explanation, 167
- Inequalities, rise, 86
- Information and Communications Technology (ICT) devices, value added (increase), 169
- Information correctness, 213–214
- information technology (IT) industry, China GDP, 170f
- Initial coin offering (ICO), 204
- Instant messaging social networking, rise, 245
- Intellectual property rights (IPR)
- Interest rate reform, PBOC focus, 124
- International Bank for Reconstruction and Development (IBRD), 46
- International capital mobility, 91
- International economic/exchange rate policies, Department of the Treasury semiannual review, 60
- International Import Expo (Shanghai), 16
- International Monetary Fund (IMF)
- Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER), 234
- Balance of Payments and International Investment Position Manual Sixth Edition (BPM6), 231
- China underrepresentation, 136
- COFER data, 135, 233
- current account, 48
- quantitative assessment, 27
- Special Drawing Rights (SDR), 112–113,229, 254
- International monetary system, reform (call), 109
- International reserves and foreign currency liquidity (IRFCL), 148
- International trade, expansion, 83, 86
- International Trade Organization, setup, 46
- Internet of Systems, 167
- Internet of Things, 110, 158, 167
- development, 180
- Internet users, mobile phone users (percentage), 172
- Investment
- IRFCL. See International reserves and foreign currency liquidity
- Iron Curtain, fall, 86–87
- L
- Latin America
- Latin Monetary Union (LMU), 97
- Leveraging, excess (impact), 164–165
- Lewis Turning Point, 34–35
- China, comparison, 160
- Libra Project (Facebook), 208
- Life expectancy, GDP per capita (relationship), 166f
- Lighthizer, Robert, 47, 249
- Lightning Network, 212–213
- Li, Keqiang, 167
- Liquid instruments, IMF definition, 232
- Liquidity
- Little chips. See Semiconductors
- Liu, He, 19, 47
- LMU. See Latin Monetary Union
- Local currency swap agreements (PBOC signing), 132t–133t
- “Long March,” Xi exhortation, 34
- Long-term deflation, engineering, 165
- Long-term real interest rates, 70
- decline, 75
- M
- Macroprudential measures, 122
- Made in China 2025, 157–158, 165
- Managed floating post “811,” 112, 118–124, 140
- execution, problem, 120
- Manufactured products, average tariff rates, 85f
- Market
- Material current account surplus, currency manipulator negotiation factor, 61
- Meng, Wanzhou (arrest), 23–24
- Military conflicts, globalization phase, 86
- Ministry of Finance (MOF), sovereign entity, 154
- establishment, 153
- MNCs. See Multinational corporations
- Mnuchin, Stephen (negotiations), 19–20
- Mobile device penetration (China), 169f
- Mobile network, data traffic (China), 174f
- Mobile payments, transaction volume (PBOC data), 171
- MOF. See Ministry of Finance
- Monetary easing, impact, 68
- Monetary policy
- Monetary policy committee (MPC), 224
- Money
- Money Tree/Money Flower, development, 243
- Monopolizing attacks, 211
- Most favored nation (MFN) status, 26
- MPC. See Monetary policy committee
- MSCI Emerging Markets Index, 142
- Mulan Bond, issuance, 254
- Multicurrency
- Multilateralism. See Anti-multilateralism
- Multilateral organizations, usage, 87
- Multinational corporations (MNCs), 194
- Mundell, Robert (impossible trinity theorem), 94, 96, 99, 113
- N
- Nakamoto, Satoshi, 226
- National Bureau of Statistics (NBS), GDP number, 156
- Nationalism, approach, 88
- National Network for Manufacturing Innovation (NNMI), 167–168
- National savings rates. See China
- National sovereignty, expression, 96
- Nei Bao Wai Dai (offshore borrowing guarantee), 121
- Neo-nationalism, rise, 3–4
- NetsUnion Clearing Corp., 171
- Network arrangement, 200f
- Networked Readiness Index (World Economic Forum), 168
- Network externalities, 226
- New Era, vision. See Xi
- New York, international financial center (rise), 106
- Nixon, Richard
- NNMI. See National Network for Manufacturing Innovation
- Nodes, 201
- impact/usage, 202
- Nominal exchange rate, equilibrium level, 123
- Nominal GDP value, increase, 163
- Nonce, addition, 202
- Non-China specific tariffs, US imposition, 42–43
- North Asia exports, Apple Inc. share price (relationship), 31
- North Korea, Chinese banks sanctions violations, 145–146
- NuBits, 209–210
- O
- O2O. See Online to offline
- Obama, Barack
- ODI. See Outward direct investments
- OEM. See Original equipment manufacturing
- Office of Foreign Assets Control (OFAC), 145
- Offshore investments
- Offshore RMB
- Offshore RMB clearing banks, 133t–134t
- Oil
- One-country-one-currency regime, shaping, 239
- One-sided intervention occurrence, currency manipulator negotiation factor, 61
- Online game revenue, company ranking, 246f
- Online to offline (O2O)
- Onshore-offshore financial products, usage, 120–121
- OPEC nations, US dollar acceptance, 71–72
- Open door policy (Deng), 15
- Optimum Currency Area (OCA), theory, 96
- Original equipment manufacturing (OEM), 24–25
- Osaka G20 meeting, 25–26, 34
- OSAT. See Outsourced semiconductor assembling and testing
- “Other investments,” 150, 154
- Outsourced semiconductor assembling and testing (OSAT), 190
- Outward direct investments (ODI), conducting, 137
- Overleveraging (China), 159–165
- Over-the-counter (OTC) foreign exchange turnover, BIS Survey, 107t–108t
- P
- P2P. See Peer-to-peer
- Pakistan East Africa Cable Express, 184
- Panic of 1857, 99, 100f
- Paper notes/coins, central bank issuance, 218
- Pareto's improvement (guarantee), globalization (impact), 79
- Paris Agreement on Climate Change, 6
- Payment currency, qualifications, 216
- Payments, BIS Committee comments, 216
- payWave, usage, 222
- PBOC. See People's Bank of China
- Pearl River Delta
- Peer-to-peer (P2P) transactions, 229
- Peng, Liyuan, 18
- Penn World Table estimates, 127, 127f
- Penny spend attack, 211
- People's Bank of China (PBOC)
- currency, economic interest, 47–48
- currency market stabilization, 113
- daily fixing rate, publication, 117
- exchange rate policy, reform, 118–119
- FOMC decision, 235
- foreign exchange holdings, change, 147f
- local currency swap agreements, 132t–133t
- market reform, 12
- reserve requirement, imposition, 122–123
- swap agreements, 131
- yuan depreciation prevention, 112
- yuan management, absence, 61–62
- Petrodollar recycling, 70–73
- PFB. See Policy Financial Bonds
- Phase One agreement (China/US), 45
- Physical collateral, 66
- Plaza Accord, 47, 57–58, 249
- dollar weakness, 59
- Policy Financial Bonds (PFB), issuance, 142, 238
- Population dividend, dissipation, 160
- Populism
- Portfolio flows, expansion, 89
- Postwar globalization, 86–89
- Pound sterling
- Production base, relocation, 29–31
- “Promise to convert” concept, 94
- Proof-of-work, 202
- Property inventory, reduction, 165
- Protectionism
- Pseudonymous threats, 211
- Public blockchains, attacks, 211
- Purchasing power parity (PPP), 14
- Q
- Quantitative easing, 67–70
- R
- Railway shock (1857), 101t
- Real effective exchange rate (REER), 55–57, 58f, 124
- renminbi, 125f
- Real-time Gross Settlement (RTGS), 242
- Reefer ship, impact, 83
- Reform, technology independence (relationship), 156–159
- Renminbi (RMB). See China renminbi
- Research Institute of Economy, Trade and Industry (RIETI), currency proposal, 95–96
- Reserve assets, function, 232
- Reserve currency, liquidity basis, 229–238
- Reserve diversification, 145–155
- Reserve requirement ratio (RRR), 163f, 218
- PBOC reduction, 162
- Reserves Advisory & Management Partnership (RAMP) survey
- Ricardo, David, 27, 51
- RMB Qualified Foreign Institutional Investment (RQFII), 142
- RRR. See Reserve requirement ratio
- RTGS. See Real-time Gross Settlement
- Rudd, Kevin, 35
- S
- SAFE. See State Administration of Foreign Exchanges
- Safeguard tariffs, Obama approval, 30–31
- SALT. See Sec ured Automated Lending Technology
- Saudi Arabia, Joint Commission on Economic Cooperation aims, 72
- Saving-investment framework, impact, 55
- Savings-investment imbalance, 70
- financial operation, 55
- Scalability. See Bitcoin
- trilemma, 210f
- Scandinavian Monetary Union (SMU), 97
- SDR. See International Monetary Fund
- Second Globalization, stages (World Economic Forum separation), 86–87
- Second Industrial Revolution, 86
- Section 301 Investigation (Trump order), 12–13, 187
- Section 301 tariffs, 249
- Secured Automated Lending Technology (SALT), usage, 219
- Secure Hash Algortihm-256 system, 202
- Segregated Witness (SegWit), 212
- Semiconductors (little chips), 186, 188–193
- Service payment, 214–215
- SHA-256, impact, 241
- SHC. See Synthetic hegemonic currency
- Shenzhen Special Economic Zone, 116
- Short-circuits, risk, 190
- Short-term position, building, 120–121
- Silk Road Economic Belt, commercial value (absence), 38
- Singapore, cross-border RMB payments, 141f
- Sino-US economic relationship
- Sino-US economic ties, 10
- Six-Pack (EU Economic governance), 97
- Small and medium-sized enterprises (SMEs), 196
- participation, 175
- SMEs. See Small and medium-sized enterprises
- Smith, Adam, 27
- SMU. See Scandinavian Monetary Union
- Social media, active user ranking, 245f
- Solow-Swan framework, 165
- South Korea
- Sovereign backing, impact, 216
- Sovereign currencies, linking, 208–209
- Sovereign wealth (China), 151t–153t
- Sovereign wealth funds (SWF), 74, 237
- Special Drawing Right (SDR). See International Monetary Fund
- State Administration of Foreign Exchanges (SAFE), 154
- State Administration of Foreign Exchanges (SAFE) Investment Company, sovereign wealth fund, 74
- Sterling. See Pound sterling
- Sub-Saharan Africa, 5G connections, projections, 182f
- Supply
- Surpluses, absorption, 49–50
- Sveriges Riksbank, 243
- SWF. See Sovereign wealth funds
- SWIFT global payments, 228
- SWIFT payments, 138
- Swiss National Bank, 243
- Sybil attacks, 211
- Synthetic hegemonic currency (SHC), 229
- Szabo, Nick, 204
- T
- Taobao, 176
- Targeted Redemption Forward (TRF), 121
- Tariffs
- action, Section 301 Investigation (impact), 20t
- manufactured products, average tariff rates, 85f
- rates. See United States.
- Tax Cuts and Jobs Act, launch, 53
- Technology
- Tether (ABS), 207–208
- Thailand, deficits, 54
- Thanos, Trump (relationship), 1
- Threat theory. See China
- Tianhong Fund, 177
- Tianhong Yu'E Bao, AUM, 177
- Total factor productivity, 127f
- Total FX reserves, total US dollar assets percentage, 147
- Total trade, GDP percentage, 36f
- TPP. See Trans-Pacific Partnership
- Trade. See United States trade
- balance, economics, 51–56
- bloc, currency standard (relationship), 93–98
- currency, link, 46–48
- exchange rate, impact/blame, 56–63
- feud, 1
- free trade, belief, 3
- imbalances, US Dollar (relationship), 46
- partners, yuan recycling process (development), 140–144
- practices, unfairness, 10–14
- slowdown, 26–29
- talks, exchange rate (involvement), 59–63
- total trade, GDP percentage, 36f
- trade-induced financial flows, 89
- US-China bilateral trade, tariff increases (effects), 28f
- world trade
- Trade Act of 1974. See US Trade Act of 1974
- Trade Facilitation and Trade Enforcement Act (2015), Treasury thresholds, 60t
- Trade war
- Tranches, usage, 20–22
- Transitional period (1979-2004), reforms, 115–117
- Transition regime, 105–106
- Trans-Pacific Partnership (TPP) trade agreement, Trump exit, 7
- Treasury. See United States Treasury
- Treaty on the Functioning of the European Union, 95
- TRF. See Targeted Redemption Forward
- “Triffinesque,” review, 69
- Triffin, Robert (dilemma), 63–67, 250
- Trilemma. See Blockchain
- Tri-party free trade agreement, 37
- TrueUSD (TUSD), 208
- Trump, Donald
- Trust crisis (1907-1913), 102t–103t
- Tversky, Amos, 104
- U
- Unfair competitive advantage
- Unicorns, 180
- Unicorn, 180–181
- Unilateralism, rise, 3–4
- United Kingdom (UK)
- United Nations Educational, Scientific and Cultural Organization (UNESCO), 6
- United Nations Human Rights Council, 6
- United States (US)
- 5G connections, projections, 182f
- 10-year government bond yield, 64f
- Current account balance, 49f, 67t–68t
- Current account deficits, 52f, 69f
- assets, systematic investment/acquisition (China), 13
- balance, restoration, 2
- bilateral trade surplus, currency manipulator negotiation factor, 61
- business, Sino-US economic relationship (impact), 31–33
- China
- China-US financial decoupling, 111
- Coinage Act (1792), 93
- companies
- consumers, Sino-US economic relationship (impact), 31–33
- crude oil first purchase price, 52f
- debt securities, change, 69f
- economic impacts/consequences, 26–33
- economy, twin deficits country, 70
- emerging market, 86
- exports, increase, 22t
- Federal Reserve, balance sheet, 67f
- GDP, percentage, 67f
- government debts, foreign holdings (contrast), 236f
- government securities, China holdings, 76f
- import tariffs, tranches (usage), 20–22
- investment/activity restrictions, China imposition, 13
- material current account surplus, currency manipulator negotiation factor, 61
- monetary base, contrast, 236f
- monetary policy, FOMC control, 66–67
- monthly trade deficits (US), 76f
- net foreign income, 53f
- non-China specific tariffs imposition, 42–43
- non-gold reserves, 241f
- official statements, 39–42
- offshore assets, 53f
- one-sided intervention occurrence, currency manipulator negotiation factor, 61
- Phase One agreement, 45
- protectionism, increase, 104
- real effective exchange rate, 57f
- recession, 58
- Saudi Arabia, Joint Commission on Economic Cooperation aims, 72
- subprime crisis, impact, 100
- tariff rates
- total factor productivity, 127
- trading partners, offset, 68
- US-China bilateral trade, tariff increases (effects), 28f
- US-China Comprehensive Framework for Promoting Strong, Sustainable and Balanced Growth and Economic Cooperation, 8
- US-China Economic and Strategic Dialogue (Hu establishment), 7–8
- US-China trade war, 37
- script, 63
- US-Korea Free Trade Agreement, 5–6
- world GDP, PPP basis, 14f
- United States Dollar (USD)
- assets, China holding, 145–147
- backing, gold convertibility promise, 64
- cross-border net payment, 76
- depreciation, 58
- devaluation, 58
- dollar-denominated bonds, Sinopec issuance, 234
- exchange rate, 10-year government bond yield (relationship), 64f
- exorbitant privilege, 63–70, 114, 250
- periods, 66
- foreign exchange currency reserve/holdings (China), 146f
- global status, regaining, 72–73
- leverage, gold holding (impact), 66
- network advantage, 237–238
- network externalities, impact, 226
- outflows, 120–121
- recycling
- reserves, FX forwards positions, 122
- RMB exchange rate, contrast, 116f
- shortage, coronavirus (relationship), 102t–103t
- trade imbalances, relationship, 46
- trade-weighted USD Index, 64f
- USD/CNY spot rate, 62f
- RMB index, relationship, 120f
- United States (US) trade
- United States Trade Representative (USTR) determinations, 12
- United States Treasury (US Treasury)
- Universal Postal Union, 6
- “Unreliable Entity List,” 23–24
- US Federal Reserve
- US National Banking Act of 1863, 239
- US Trade Act of 1974, 187
- Section 301, 12
- W
- Waters, Maxine, 244–245
- WCC. See World Crypto Currency
- WeChat, China usage, 245–246
- Wen, Jiabao, 117
- West African Economic and Monetary Union (UEMOA), 95
- Western powers, rise, 85–86
- Williams, John, 33
- Windows guidance, 122
- Witness data, 212
- World
- World Bank
- World Crypto Currency (WCC), 252
- World Economic Forum
- World trade
- World Trade Organization (WTO), 46
- World Trade Uncertainty Index, 29f
- Y
- Yangtze River Delta Economic Region, 5G network, 180
- Yi, Gang, 47
- YRD. See Action Plan for Yangtze River Delta
- Yuan
- appreciation, pressure, 119
- clearing bank (JPMorgan), 15–16
- convertibility, China development, 253
- currency outlook/reforms, 124–129
- cycling process, 254
- depreciation, PBOC prevention, 112
- headquarters currency, 129
- international circulation, enhancement, 253
- monetary policy context, 115–129
- recycling process, development, 140–144
- safe haven currency, proof, 109–110
- trade war, relationship, 111–114
- value, PBOC management (absence), 61–62
- Yu'ebao, launch, 176
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