In the last episode of YDHTY, we explored China's plan to replace the dollar as the dominant global currency with Zoe Liu of the Council on Foreign Relations. In it, we learned the measures China is taking to internationalize the renminbi and create an economic sphere independent of US influence.
What does the rise of past currencies tell us about the chances the renminbi could eventually become the dominant global currency?
To answer this question, I spoke with Benjamin J. Cohen, Professor Emeritus at the University of California Santa Barbara and author of Currency Statecraft: Monetary Rivalry and Geopolitical Ambition. In his book, Cohen outlines how past currencies have gained international standing via a mix of attractiveness to the markets and promotion by the state, any why China is unlikely to implement the reforms that would make that happen.