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Federalism

A Political Theory for Our Time

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Edited By Lucio Levi, Giampiero Bordino and Antonio Mosconi

This volume is a collection of essays published between 1999 and 2015 in the review The Federalist Debate. The book highlights the issue of federalism intended as a theoretical paradigm to interpret the major problems of our age, and in particular the issues of peace and war in a world characterized by an uncontrolled globalization.

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Adding the RMB into the SDR Basket: an Evaluation

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Yide QIAO and Jiafei GE

The Special Drawing Rights (SDR) is an international reserve asset, created by the IMF in 1969 to supplement member countries’ official reserves. Its value is based on a basket, which currently consists of four key international currencies, the USD, the EUR, the GBP and the JPY. The IMF reviews the currency composition of the SDR basket every five years guided by several long-standing principles aiming at enhancing the attractiveness of the SDR as a reserve asset. IMF’s criteria for the SDR basket currencies are: 1) the “major trading country” criterion, specifically the currency is to be issued by IMF members (or by monetary unions that include IMF members), whose exports of goods and services during the five-year period ending 12 months before the effective date of the revision had the largest value1; and 2) the “free usable” criterion (FU), namely the currency is to be widely used to make payments for international transactions and to be widely traded in the principal exchange markets2. In the 2010 review of the SDR basket, the RMB was deemed to be a currency meeting the “major trading country” criterion. But there were some shortages in the RMB in terms of the FU criterion. In the almost five years after last review, the RMB has made a phenomenal growth in international use and trade. So what are the prospects for the RMB in the review in 2015? ← 421 | 422 →

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