International Political Economy of the Renminbi

Hyoung-kyu Chey is Associate Professor of International Political Economy at the National Graduate Institute for Policy Studies (GRIPS) in Tokyo. He is the author of International Harmonization of Financial Regulation? The Politics of Global Diffusion of the Basel Capital Accord (2014).

• 1.Introduction 2. The Politics of Reactive Currency Statecraft 3. The Rise of the "People’s Currency" 4. The United Kingdom: A Passionate Advocate 5. Japan: A Diplomatic User of the Renminbi 6. South Korea: A Late but Active Accommodator 7. The United States: A Confident Hegemon 8. ConclusionReferencesIndex

"This absorbing book, with its focus on how nations respond to the internationalization of China’s renminbi, breaks new ground in the study of international currencies. Based on a mountain of empirical evidence, Chey’s analysis of ‘reactive currency statecraft’ is cogent and persuasive. The volume deserves to be on the book shelf of anyone with a serious interest in the political economy of finance." Benjamin J. Cohen, University of California, Santa Barbara"In this fascinating book, Hyoung-kyu Chey sheds new light on a crucial, but neglected dimension of the politics of the RMB’s internationalization: the reactions of foreign states. He reveals not just the varied nature of those reactions but also how much they are influenced by broader foreign policy goals. The lesson is clear and important: international monetary transformations are always deeply political processes."Eric Helleiner, University of Waterloo"An incisive investigation into national responses to the internationalization of China’s currency. Chey introduces a useful theoretical framework based on the novel concept of ‘reactive currency statecraft.’ The book’s argument and case study evidence, which includes dozens of interviews with top political and financial officials in Japan, Korea, the United Kingdom, and the United States, will be of great interest to scholars of international money and anyone interested in how governments are responding to China’s rise." Daniel McDowell, Syracuse University"This book presents a nuanced account of the ‘reactive currency statecraft’ of these major economic powers vis-à-vis the RMB’s internalization, and sheds valuable light on the rationale underlying each country’s policies. If the overseas reactions to RMB internalization become more diverse and more consequential, scholars will need to pay greater attention to the study of reactive currency statecraft. In that case, the framework and the foundational research in this book will provide an excellent point of departure."Hongying Wang, University of Waterloo, Canada