International Currency Circulation and Monetary Policy
1 Guangzhou College of Technology and Business, Guangzhou 510850, China;
2 China Development Bank, Beijing 100031, China
* Corresponding author:
* Author to whom correspondence should be addressed.
Received: 5 Feb 2024 / Revised: 22 Feb 2024 / Accepted: 20 Feb 2024 / Published: 23 Feb 2024
Abstract
This paper explores the challenges in the internationalization of local currencies and the establishment of a robust International Currency Circulation (ICC) mechanism. Employing an innovative Agent-Based Model (ABM) grounded in Behavioral Finance, our research examines the interdependence between currency circulation and inter-bank treasury bond market. Through simulations, we analyze the impacts of monetary policies, increased overseas holdings, and investor sentiments on treasury bond prices and market activities. Our findings underscore the pivotal role of a robust monetary policy, the strategic optimization of market structures through overseas institutions, and the non-linear relationship between investor sentiment and treasury bond prices. This study contributes valuable insights for policymakers, investors, and academics, emphasizing measures to enhance market efficiency and stability in the realm of international currency circulation.
Keywords: international currency circulation; agent-based model; monetary policy
OPEN ACCESS
This is an open access article distributed under the Creative Commons Attribution
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provided the original work is properly cited. (CC BY 4.0).
CITE
Zhang, H.; Guo, D. International Currency Circulation and Monetary Policy. ijie 2024, 3, 1.
Zhang H, Guo D. International Currency Circulation and Monetary Policy. International Journal of Innovation and Entrepreneurship. 2024; 3(1):1.
Zhang, Hanlin; Guo, Dong. 2024. "International Currency Circulation and Monetary Policy." ijie 3, no. 1: 1.
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