Currency Hierarchy and Financial Globalisation: Why the International Monetary Order Is Under New Scrutiny

Talk of de-dollarisation, BRICS currency arrangements and reserve diversification has moved from academic seminar rooms into central bank strategy documents. Beneath that debate sits a structural question: why do some currencies command liquidity premia and stability, while others — including those of large, sophisticated emerging economies — carry a persistent risk premium regardless of domestic fundamentals?

What the book covers

Currency Hierarchy and Financial Globalisation, by Luiz Fernando de Paula, Barbara Fritz and Daniela Magalhães Prates, provides the analytical framework for that question. Building on the currency hierarchy literature, the authors trace how financial globalisation has entrenched a ranking of currencies in the international monetary system — and how that ranking constrains monetary and exchange rate policy for countries positioned lower in the hierarchy.

• The theoretical foundations of the currency hierarchy framework
• How liquidity premia and currency risk premia are distributed across the international monetary system
• Capital flow volatility and exchange rate management in peripheral economies
• Empirical evidence from Latin America and other emerging markets
• Implications for policy space and monetary autonomy in the developing world

The timing is notable. As multilateral discussions of reserve diversification intensify and several economies experiment with local-currency trade settlement, this book offers a rigorous account of why the existing hierarchy has proven so durable — and what would need to change for it to shift.

Who should read it

Academics and graduate students in international economics and finance, central bank and policy researchers, and institutional libraries building collections on the international monetary system.

Ordering information

Available now at CLNZ Books. Price includes worldwide shipping. Credit card and PayPal accepted. Institutional orders via Request a Quote.

View Currency Hierarchy and Financial Globalisation on CLNZ Books →
Request a Quote for institutional orders →