The people's money : how China is building a global currency / Paola Subacchi.

Enhanced descriptions from Syndetics:

Many of the world's major economies boast dominant international currencies. Not so for China. Its renminbi has lagged far behind the pound, the euro, and the dollar in global circulation--and for good reason. China has long privileged economic policies that have fueled development at the expense of the renminbi's growth, and it has become clear that the underpowered currency is threatening China's future. The nation's leaders now face the daunting task of strengthening the currency without losing control of the nation's economy or risking total collapse. How are they approaching this challenge?

In The People's Money , Paola Subacchi introduces readers to China's monetary system, mapping its evolution over the past century and, particularly, its transformation since Deng Xiaoping took power in 1978. Subacchi revisits the policies that fostered the country's economic rise while at the same time purposefully creating a currency of little use beyond China's borders. She shows the key to understanding China's economic predicament lies in past and future strategies for the renminbi. The financial turbulence following the global crisis of 2008, coupled with China's ambitions as a global creditor and chief economic power, has forced the nation to reckon with the limited international circulation of the renminbi. Increasing the currency's reach will play a major role in securing China's future.

Reviews provided by Syndetics

Publishers Weekly Review

"Money is the game changer of our time," says economist Subacchi in this accessible introduction to and critique of China's efforts to strengthen its currency. Drawing on her research and role as director of international research at the Royal College of International Affairs in London, Subacchi lays out the story of the renminbi in intentionally plain language so as to appeal to general readers who are interested in international economics as well as an academic audience. In the first several chapters, Subacchi describes how capital movements have driven China's transformation in the last 20 years, what it takes for a currency to become "international money," and the effects of living with a currency that lacks international status. By the middle of the work, she asks the key question: why isn't China's renminbi treated as an international currency? She also analyzes Japan's experience with currency internationalization and discusses the importance of a well-developed financial center with good infrastructure. Subacchi argues for reforms and policies to push the renminbi's use while acknowledging that China's ambitions to raise its status as an international currency are still unfulfilled. Given the decision, effective on October 1 2016, to enter the renminbi into the International Monetary Fund's basket of reserve currencies, this work is a timely, relevant, and fascinating read. (Nov.) © Copyright PWxyz, LLC. All rights reserved.

CHOICE Review

Subacchi (Chatham House) provides an informative title on renminbi (the Chinese currency, which literally means "people's money") and the attempt of the Chinese government to internationalize the currency. Building on her expertise on international financial and monetary systems, the author points out the importance of exports and investment in China's economic growth. China is the only large trading country without an international currency. This imbalance facilitates and impedes the country's economy. The author also discusses the internationalization of renminbi through careful (one may say timid) gradual steps, including encouraging regional use and managed convertibility (quotas for capital movements). The author asserts that renminbi will take a long time, if ever, to become a leading international currency unless the Chinese government accelerates its financial reforms. This will be an important episode in the global economy. The title is interesting and timely given the recent volatilities involving renminbi. Accessible to all readers, the book is not intended as a textbook. The title is particularly interesting for readers interested in the Chinese currency and its impact on the global economy. Summing Up: Recommended. Lower-division undergraduates through faculty. --Dong Li, University of Texas at Dallas