TY - EJOU AU - Zhang, Z. Hanlin AU - Guo, G. Dong TI - International Currency Circulation and Monetary Policy T2 - International Journal of Innovation and Entrepreneurship PY - 2024 VL - 3 IS - 1 SN - 2753-6297 AB - 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. KW - international currency circulation KW - agent-based model KW - monetary policy DO - 10.56502/IJIE3010001