Financial statecraft and transaction costs
Journal: Refubium (Universitätsbibliothek der Freien Universität Berlin)
Year: 2021

The scholarly debate on currency internationalization focuses on country characteristics and policies as the main determinants in currency competition. However, this literature has neglected the fact that, given the intertwined nature of the international monetary system, other countries’ actions and the functioning logic of international finance can also impact a currency's international status. This article shows that RMB usage has been boosted not only by Chinese statecraft but also by econom