The Role of the Renminbi in the International Monetary System

Week 1: The Role of the Renminbi in theInternational Monetary System

The lecture will commence with areview on the roles of money in the domestic and international monetarysystems. Upon analyzing the critical defects of the international monetarysystem and the necessity of reform, we will discuss the global governance andinstitutional reform of the international monetary system. An assessment on thecosts and benefits associated with the internationalization of the Renminbi forthe system will conclude the lecture.

Week 2: Internationalization of the Renminbi andRenminbi Offshore Markets

This lecture will address thefollowing questions: What are the aims of internationalizing the Renminbi? Whatanalytical framework can we adopt to draft proposals on the possible process ofRenminbi internationalization? For China, what are the costs and benefits ofestablishing Renminbi offshore markets? How can the risks to monetary andfinancial stability be managed prudently? What are the implications for otherareas, particularly Hong Kong?

Week 3: The Monetary and Exchange Rate Policy ofChina

The lecture will begin with ananalysis on the approaches, instruments, and intermediate targets of China’smonetary policy. The legal framework of monetary regulation, the role of thecentral bank, and the objective of monetary policies will then be elaborated,followed by a brief discussion on the interest rate and exchange rateliberalization. The lecture will then proceed to review the monetary policy stanceof the People’s Bank of China over the years and discuss the recent experienceof monetary policymaking in China.

Week 4: The Future of Hong Kong’s Monetary System

This lecture will focus on themonetary system of Hong Kong. We will review the history of Hong Kong’smonetary policy and monetary control, thus revealing how the monetary system ofHong Kong has been designed to serve the public interest most effectively andmaintain Hong Kong as an international financial center. The lecture willconclude with a discussion on the future of the Linked Exchange Rate System,which has served Hong Kong well for almost 30 years.