Yuan Upmanship
05/22/2014 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist, reserve currency, Yuan
A great international currency possesses three characteristics. It’s used to settle a substantial amount of international trade and commerce, it floats freely and is used as global reserve currency, meaning it’s held in large quantities by central banks and financial institutions. Thought of this way, the Chinese Yuan has largely accomplished the first, but because it is nowhere near accomplishing the second, it cannot accomplish the third. Give it time.