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International Economics: the Chinese Yuan and the US $ (Essay Sample)

Outline for the international economic In the next ten years, the Chinese Yuan might replace the US$ as a reserve currency. Will this stabilize global currency markets and avoid the crises of recent years? Discuss. Abstract 150 words Introduction - explain how I am going to discuss the assignment. 350 words Main body 4000 words - The history of (Yuan) since 1970 round 500 words - The history of USA $ since 1940 around 500 words - Compare both currencies 250 words (Descriptive) What the reserve currency is 500 words (Descriptive) Analyze the models that are used 1000 Words (Analysis (of literature)) Use the economy model by seeing what they might look like in the future at least 2 and you can use 1 graphs as a model there is one in that way . 500 Words Will this stabilize global currency markets? (Analysis) 500 words See what would have happened, with the crises if the Yuan was in place instead of the Dollar 750 words (Analysis) Conclusion - give opinion and what's my summery for the question 500 words Bibliography At least it has to have 20 books and journals (websites only for charts) Not's for the essay : 1-focusing future. You have to explain why the dollar is global currency, give maybe some historical background (e.g Bretton Woods) Analise exchange rate, foreign reserves, liquidity and so on. Compare both currencies Dollar and Yuan. And when you present those factors you can start forecasting what can happen in future. 2- please make sure you will use graphs and diagrams with some explain for them 3- in some positions you have to use the arguing method between authors about some questions what I have written . 4 you can use some References from the internet just get graphs or diagrams . I will let you know if I will need any thing to change it many thanks . source..
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International Economics: the Chinese Yuan and the US $
Currency crises have been on the increase in the global markets. The various fiscal and monetary policies used by the world economies generate different kinds of fluctuations in the global currency markets. The crises that the US dollar has encountered in the past years have triggered proposals that another currency should be introduced as the reserve currency. The Yuan is one of the currencies that the global community proposes for a reserve currency. This paper has discussed the historical background of the dollar and the Yuan. The comparison of these currencies on the basis of market stability has been made. Models that are mainly used by fiscal policy makers to evaluate the regimes of currency exchange rates have also been discussed. The Mundell-Fleming model has shown that flexible exchange rate system is the best in maintaining balance in the global currency markets. This paper has concluded that the dollar is still the choice of many, since the Yuan has hugely been affected by the fixed rate system in China.
The frequent economic declines and recessions in the world economies have triggered the establishment of various financial policies and economic initiatives. The last few decades have seen difficult economic times in many countries. The money markets have encountered numerous challenges during economic recessions. There is an overwhelming prospect of the American dollar losing grip in most of the world’s money markets. This is because there has emerged various stable currencies in the large economies, such as the European Euro and the Chinese Yuan. Crises have been experienced due to the consequent fluctuation of the US dollar, and the world may be headed for a change in the reserve currency situation. Perhaps, the Yuan might replace the US dollar as the world’s recognized reserve currency. However, this possibility is worth intensive evaluation so that economists and financial analysts can convince the world that this would be a sound move. This paper seeks to explore the impacts that would be generated by replacing the US dollar for Chinese Yuan, in terms of stabilizing the global currency markets to avoid economic crises that have occurred in the past.
The global currency markets are very sensitive to economic malpractices. Stock markets are some of the platforms that are hugely affected by fluctuations in foreign currencies, such as the reserve currency. Trade deficits have often resulted to a wobbling monetary situation in the United States, and the 2006 deficit of more than $700 billion can show the imminent possibility of the collapse of the dollar (Hagee, 2010, p.99). The unfavorable conditions that have occurred in the money markets as a result of trade deficits include deflation-inflation extremes and inadequacies in debt settling. These are notably the mo...
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