The effects of monetary policy of currency internationalization: A simple analysis framework

This article takes a simple macroeconomics model as a analysis framework, and explores the effects of the currency internationalization on monetary policy. This innovation is that the paper puts two currency internationalization factors into a simple open macroeconomic model to analyze the effects of monetary policy of currency internationalization. The contribution is that the paper provides a new viewing angle and analytical framework for the relationships between the currency internationalization and the monetary policy. The conclusions demonstrate under the condition of different degrees of the currency internationalization, the income, interest rate, balance of payments, exchange rate, and consumption effects of the monetary policy and the monetary circulation velocity are different. And under the condition of currency internationalization, the Central Bank´s monetary policy implementation will be more complex and difficult.