Paper Currency Standard in the Perspective of Political Economy and Paradox Between Chi-nese Currency and Economy
With disintegration of the Bretton Woods system,the world economic system has entered the era of paper currency standard.The transition of monetary forms from metal to paper currency is historically inevitable.Within the paper currency standard,paper currency,no longer a symbol of gold value,but of commodity value,is more dynamic than the commodity value,meaning national government can more independently and actively regulate the operation of the economy by utilizing the circulation of paper currency.However,the function of paper currency is almost bound to be abused,especially by monetary and financial powers.This is embodied in the privilege of US dollars as the world currency after the collapse of the Bretton Woods sys-tem,that is,the United States can issue paper money into the world circulation system without limit.As a result,the economy in developing countries,especially China,is constrained by the hegemony of US dollars in such aspects as commodity trade,foreign investment,and ex-change rate stability.There is still a long way to for the internationalization of RMB.
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