Even if it causes global tension and takes awhile, the yuan could become the world’s go-to reserve currency... or could it? Nouriel Roubini thinks it could if these four changes happen in China.Nouriel Roubini, Professor of Economics and International Business at New York University, outlines the four things necessary for the yuan to replace the dollar as the world's reserve currency.
Nouriel Roubini is a Professor of Economics and International Business at New York University Stern School of Business. He received his undergraduate degree from Bocconi University in Milan, Italy, and his Ph.D. in Economics from Harvard University in 1988.
Popularly known as Dr. Doom, Professor Roubini is best known for his accurate predictions of the 2007-2008 global financial crisis. He is most recently the co-author of "Crisis Economics: A Crash Course in the Future of Economics."
Dr. Roubini says that four things need to happen for the yuan to replace the dollar as the world's reserve currency: - more flexible exchange rates
- elimination of most capital controls
- liberalization of domestic capital markets
- deep and liquid markets for the renminbi
How long will it take for all of these requirements to occur? Watch Dr. Roubini's full interview at Big Think.
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