Global economic crisis and monetary system adjustment: empirical evidence and theoretical framework

ZHANG Guangbin¹ HUANG Haizhou² ZHANG Shaozong¹

(1.Yunnan Normal University)
(2.China International Capital Corporation Limited )

【Abstract】The world economy is yet to step out of the fallouts of the global financial crisis ten years after its eruption in 2008. Historically, every global economic crisis occurred in a critical period of the global monetary system restructuring. Moreover, failure of the global monetary system to get adjusted in accordance with changing times was an important factor behind the outbreak of the global economic crisis, which has prompted us to explore the relationship between global monetary system adjustment and global economic crisis. Theoretically, the premise that a single sovereign currency acts as an international standard currency is that the private attribute of its currency issuance can support its public attribute as an international standard currency and whether the premise holds depends on the size of the economy of the sovereign state. However, the reality is that with the convergence of external economic growth, the United States has had a declining share in the global economy, which leads to the cyclical breakdown of the theoretical tension that sustains the global monetary system. The result is the cyclical outbreak of global economic crisis.

【Keywords】 global economic crisis; global currency system; international standard currency;

【DOI】

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