Acta Oeconomica Pragensia 2011, 19(6):3-20 | DOI: 10.18267/j.aop.348

A Hegemonic and a Post-Hegemonic World Functioning and the New Global Monetary and Financial System

Martina Jiránková
Vysoká škola ekonomická v Praze, Fakulta mezinárodních vztahů (martina.jirankova@vse.cz).

The article deals with the world functioning from the view of the hegemonic stability theory, which proposes that open international systems are connected with a dominant state existence, and possibly its post-hegemonic functioning in the form of country co-operation. The question is demonstrated on the example of the US dollar performing the role of the key world currency in both private and official use at present: it prevails in foreign currency transactions, in international reserves, in overseas bank deposits and loans, etc. Problems of the global economy, especially global imbalances, have led to suggestions by China, other countries and the International Monetary Fund to reform the global monetary order. These suggestions have taken the form of a multi-polar system of more currencies belonging to the economically most important countries (dollar zone, euro zone, Asian currency zone). Other suggestions include a system based on Special Drawing Rights, where a change ought to be made in the basket currencies adequately to the world economic situation, and a system of creating a new global currency. The advantages of a new global currency would be especially no connection to national economy developments, higher stability and no risk on assets denominated in this currency due to the highest rating. It is discussed which attitudes of the main countries such as the USA, BRIC and others could be possible in the view of the theories mentioned.

Keywords: US dollar, hegemony, co-operation, key world currency, reform of the international monetary and financial system
JEL classification: F33, F55, F59

Published: October 1, 2011  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Jiránková, M. (2011). A Hegemonic and a Post-Hegemonic World Functioning and the New Global Monetary and Financial System. Acta Oeconomica Pragensia, 19(6), 3-20. doi: 10.18267/j.aop.348
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. BALAAM, D.; VESETH, M. 2008. Introduction to International Political Economy. 4th ed. New Persey : Pearson Education, 2008. ISBN 978-0-13-514322-3.
    2. BERGSTEN, C. F. 2009. The Dollar and the Deficits [on line]. November 2009 [cit. 2011-07-15]. www.iie. com/publications/papers/paper.cfm?ResearchID=1312.
    3. BRAUDEL, F. 1999. Dynamika kapitalismu. 1. vyd. Praha : Argo, 1999. ISBN 8072031937.
    4. BRIC Demand Global Monetary Shake-up, Greater Influence [on line]. 11-04-15 [cit. 2011-07-15]. www.defenceweb.co.za/index.php?option=com_content&view=article&id = 14847:brics -demand-global-monetary-shake-up-greater-influence&catid=54:Governance&Itemid=118.
    5. BRZEZINSKI, Z. 2004. Volba: Globální nadvláda nebo globální vedení. 1. vyd. Praha : Mladá fronta, 2004. ISBN 80-204-1179-8.
    6. DIETER, H. 2004. The Stability of International Financial Market: A Global Public Goods? In SCHIRM, S. A. (ed.). New Rules for Global Markets: Public and Private Governance in the World Economy. 1. ed. Basingstoke : PalgraveMacMillans, 2004, s. 23-43. Go to original source...
    7. GILPIN, R. 2001. Global Political Economy: Understanding the International Economic Order. 1st ed. Princeton : Princeton University Press, 2001. ISBN 0-691-08677-X. Go to original source...
    8. HUMPAGE, F. O. 2009. Will Special Drawing Rights Supplant the Dollar? [on line]. 09-05-08 [cit. 2011-07-14]. www.voxeu.org/index.php?q=node/3538.
    9. Chiang Mai Initiative as the Foundation of Financial Stability in East Asia. [on line]. [cit. 2011-09-04]. www.asean.org/17902.pdf.
    10. China's Hu Jintao: Currency System Is "Product of Past" [on line]. 11-01-17 [cit. 2011-07-15]. www.bbc. co.uk/news/world-asia-pacific-12203391.
    11. IMF, 2010. Reserve Accumulation and International Monetary Stability [on line]. [cit. 2011-07-11]. www. imf.org/external/np/pp/eng/2010/041310.pdf.
    12. JIRÁNKOVÁ, M. 2010. Národní státy v globálních ekonomických procesech. Praha : Professional publishing, 2010. ISBN 978-80-7431-025-6.
    13. KADLEC, CH. W. 2010. Time to Reform International Monetary System [on line]. 10-10-11 [cit. 2011-07-15]. www.forbes.com/2010/11/10/currency-monetary-policy-china-opinions-contributors-charles -kadlec.html?boxes=Homepagechannels.
    14. KEOHANE, R. O. 1984. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton : Princeton University Press, 1984.
    15. LUKÁŠ, I. 2009. Alternativní globální finanční a měnový systém [on line]. 09-12-23 [cit. 2011-07-13]. http://glopolis.org/cs/clanky/alternativni-globalni-financni-a-menovy-system/.
    16. MANDEL, M. 2011. Několik otázek k současnému postavení amerického dolaru. Mezinárodní politika. 2011, č. 2, s. 10-14. ISSN 0543-7962.
    17. MARKOVÁ, J. 2002. Mezinárodní měnové instituce. Praha : VŠE, Nakladatelství Oeconomica, 2002. ISBN 80-245-0431-6.
    18. NORRLOF, C. 2010. America's Global Advantage. Cambridge : Cambridge University Press, 2010. ISBN 978-0-521-74938-1. Go to original source...
    19. O'BRIEn, r.; Williams, M. 2007. Global Political Economy. 2nd ed. Houndmills; Basingstoke; Hampshire : Palgrave Macmillan. ISBN 978-0-230-00669-0.
    20. OECD Factbook [on line]. [cit. 2011-04-18]. www.oecd-ilibrary.org/economics/oecd-factbook_18147364.
    21. PIBOONTANASAWAT, N. 2011.China, Indonesia In 100 Billion Yuan Currency Swap [on line]. 09-0323 [cit. 2011-09-01]. www.bloomberg.com/apps/news?pid=newsarchive&sid=aJh.WeyGfWvU& refer=world_currencies.
    22. RAVENHILL, J. ed. 2008. Global Political Economy. 2nd ed. New York : Oxford University Press, 2008. ISBN 978-0-19-929203-5.
    23. RAVENHILL, J. 2008. Regionalism. In RAVENHILL, J. (ed.). Global Political Economy. 2nd ed. New York : Oxford University Press, 2008. ISBN 978-0-19-929203-5, p. 172-209.
    24. REISEN, H. 2009. Shifting Wealth: Is the US Dollar Empire Falling? [on line]. 09-06-20 [cit. 2011-07-11]. www.voxeu.org/index.php?q=node/3672.
    25. REVENDA, Z. 2010. Peníze a zlato. Praha : Management Press, 2010. ISBN 978-80-7261214-7.
    26. Russia, China Call for Diversity of International Monetary System [on line]. 09-06-17 [cit. 2011-07-15]. www.mosnews.com/politics/2009/06/17/divsystem/.
    27. SCHWARTZ, H. M. 2000. States versus Markets: The Emergence of a Global Economy. 2nd ed. Hound-mills; Basingstoke; Hampshire : Macmillan, 2000. ISBN 0-333-80263-2.
    28. STUDÝNKA, B. 2010. Odvážný Zoellickův návrh [on line].10-11-24 [cit. 2011-09-01]. www.ceskapozice. cz/byznys/finance/odvazny-zoellickuv-navrh.
    29. STUCHLÍKOVÁ, Z. 2010. Hospodářská politika Číny a její přístup k multilateralimu a regionalismu. In CIHELKOVÁ, E. a kol.. Regionalismus a multilateralismus: základy nového světového obchodního řádu? Praha : C. H. Beck, 2010. ISBN 978-80-7400-196-3, s. 106-116.
    30. Tomský, A. 2010. Dluhy - americký exportní artikl [on line]. 10-11-08 [cit. 2011-04-26]. http://zpravy.e15.cz/nazory/komentare/dluhy-americky-exportni-artikl.
    31. Triffin Dilemma [on line]. [cit. 2011-05-30]. http://lexicon.ft.com/Term?term=Triffin-dilemma.
    32. United States [on line]. [cit. 2011-06-24]. www.oecd-ilibrary.org.ezproxy.vse.cz/docserver/download/ fulltext/1211011ec004.pdf?expires=1308911265&id=id&accname=ocid195691✓sum = F8 8AF210FDAA62E8082BB7FB9E5FD28F
    33. WAISOVÁ, Š. 2008. Mezinárodní organizace a režimy. Plzeň : Aleš Čeněk, 2008. ISBN 978-80-7380-109-0. WALTER, D. 2005. Understanding International Financial Globalization In International Political Economy. In PHILLIPS, N. (ed.). Globalizing International Political Economy. 1. ed. Basingstoke : PalgraveMacMillan, 2005, s. 141-164.
    34. WATSON, M. 2008. Theoretical Traditions in Global Political Economy. In RAVENHILL, J. (ed.). Global Political Economy. 2nd ed. New York : Oxford University Press, 2008. ISBN 978-0-19-929203-5, p. 27-66.
    35. WEBER, J. 2011. China and Argentina in Currency Swap [on line], 09-03-31 [cit. 2011-09-01]. www. ft.com/intl/cms/s/0/eba6405c-1d7e-11de-9eb3-00144feabdc0.html#axzz1WiS7TmxJ.
    36. XIAOCHUAN, Z. 2009. Reform the International Monetary System [on line]. 09-03-23 [cit. 2011-07-11]. www.bis.org/review/r090402c.pdf.
    37. ZHIMING, X. 2011. China, Belarus Agree On 20b Yuan Currency Swap [on line]. 09-03-11 [cit. 2011-09-01]. www.chinadaily.com.cn/bizchina/2009-03/11/content_7569361.htm.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content