TY - THES A1 - Popp, Nikitas Xenophilos T1 - Great Powers Have Great Currencies BT - An Analysis of the Internationalization of the Renminbi and it’s Costs and Benefits in the Context of Currency Hierarchy N2 - This bachelor thesis examines the Chinese campaign for the internationalization of the renminbi (RMB) in the context of currency hierarchy theory and analyzes whether economic or political factors were the primary drivers behind this campaign. The research applies Benjamin J. Cohen's cost and benefit methodology to assess the costs and benefits associated with RMB internationalization. The study finds that the RMB internationalization campaign gained significant momentum after the global financial crisis, with the RMB becoming the 5th most active currency for global payments and gaining inclusion in the SDR currency basket. The paper assumes that Chinese policy is primarily motivated by China's great power ambitions and pursuit of political prestige and autonomy. By examining the costs and benefits of RMB internationalization, the study confirms this assumption but with ambivalent results. The potential economic benefits appear significant, but the limited availability of quantitative data and the early stage of RMB internationalization hinder a thorough interpretation. On the other hand, the political benefits, often derived from the economic benefits, are supported by evidence from the literature, indicating their importance to Chinese authorities. The costs associated with RMB internationalization, which are harder to determine at this stage, seem to be outweighed by the benefits and may even have a net positive impact, such as currency appreciation. However, the meaningfulness of these results may be limited as more data becomes available in the future, potentially proving them inaccurate. Overall, this thesis contributes to the existing literature by applying Cohen's cost and benefit methodology to the Chinese RMB internationalization campaign and highlighting the political dimension of China's monetary ambitions. The research draws on academic literature and official data from international financial institutions to support its arguments. T3 - Abschlussarbeiten 2023 - 80 KW - Monetary Economics KW - Monetary policy KW - Currency Hierarchy KW - Macroeconomics Y1 - ER -