The Money View: China and the International Dollar

The video tutorial discusses the hierarchy of money and credit, highlighting the domestic dollar's superiority over bank deposits. It explores the pre-crisis international monetary system, where the international dollar was considered above domestic currencies. The crisis revealed that the international dollar was actually below the domestic dollar in hierarchy. The video concludes with a discussion on reconstructing the international monetary system to establish key currencies like the renminbi, dollar, and euro with their own hierarchies.

What is considered a superior form of money in the hierarchy discussed?

• Money market mutual funds

• Eurodollars

• Domestic dollar and bank reserves

• Bank deposits

Before the financial crisis, what was the perceived position of the international dollar in the monetary hierarchy?

• Non-existent in the hierarchy

• At the same level as domestic currencies

• Below domestic currencies

• Above domestic currencies

Which currencies were considered at the same level as the domestic dollar before the crisis?

• Renminbi and euro

• Swiss franc and rupee

• Yen and pound

• Canadian dollar and Australian dollar

What did the crisis reveal about the position of various forms of dollars in the hierarchy?

• They were above the domestic dollar

• They were at the same level as the domestic dollar

• They were below the domestic dollar

• They were not part of the hierarchy

What is the current discussion about the international monetary system aiming to achieve?

• Create a more balanced relationship between domestic currencies

• Increase the dominance of the international dollar

• Eliminate the hierarchy of currencies

• Establish a single global currency