But Russia has liberalized prices, a convertible currency, a relatively open labor market, and privately owned enterprises.
Meanwhile, consumers in China are hoping for greater access to Western goods for their as-yet non-convertible currency.
Seeing as the yuan is not a fully convertible currency, this may still take at least five years.
However, that objective (price stability) is more credibly attainable under a convertible currency than a pure fiat money.
FORBES: Ben Bernanke's QE4: Another Step Toward Helicopter Money, And Away From Freedom
Hong Kong remains a separate customs area, with its own fully convertible currency.
However, wages are held back by a large pool of surplus labour, and China's partially convertible currency is pegged to the dollar.
Freely determined market prices and a monetary system that allows the supply of money to meet demand through market processes and a convertible currency ensure long-run prosperity.
FORBES: Bernanke Administers Another Cruel Dose Of Financial Morphine With QE3
Most people who matter agree about the economic and political direction the country has to take: it must embrace markets, private property, a stable, convertible currency, regular elections and freedom to travel abroad.
The government wants to make it a fully convertible, tradable currency.
FORBES: Stronger Yuan Makes Life Harder For Chinese Exporters
Heavy subsidies to energy and water prices have been reduced and, last October, the government finally made its currency convertible and unified the exchange rate.
It is beginning to promote use of the yuan instead of the dollar in transactions with some of its trade partners, but it has set no timetable for making its currency convertible.
Under the classical gold-coin standard (1717-1914) private banks and central banks alike issued currency convertible into a fixed weight of gold, with balance sheets consisting primarily of gold coins and short-term loans denominated in local (but gold-convertible) money.
FORBES: Gold, Reagan and the Reds: From Degraded Dollar to Downgraded Debt
China is now likely to learn from its neighbours' experience and proceed more slowly in opening up its own financial system and making its currency fully convertible.
Today, the currency is convertible only on the current account.
In addition to all of these tax issues, the U.S. in the early 1930s was on a gold standard where paper currency was legally convertible into gold.
WSJ: Arthur B. Laffer: Taxes, Depression, and Our Current Troubles
Such agreements allow central banks to swap currencies and can be used by firms to settle trade in local currencies rather than in US dollars, as happens now, since China's currency is not fully convertible to other currencies.
Such agreements not only allow central banks to swap currencies, but can also be used by firms to settle trade in local currencies rather than in US dollars, as happens now, since China's currency is not fully convertible to other currencies.
Except for the Chinese yuan, which is non-convertible, payment can be received in any currency.
There would be nothing like the same confidence, by the public generally, in an inconvertible currency so regulated, as in a convertible one: and the most instructed person might reasonably doubt whether such a rule would be as likely to be inflexibly adhered to.
FORBES: The 10 Minute Gold Standard: It's Much Easier Than You Think
The currency, informally known as the yuan, has been convertible on the current account since December 1996.
If Bitcoin were truly to become an alternative currency, it would have to be able to be convertible into credit, including credit cards.
Moreover, when the renminbi becomes convertible, it will already be accepted the world over as a currency that can be used for settling trades.
Central bank officials in Bosnia and Herzegovina, whose convertible mark is currently pegged to the euro, could switch to whatever hard currency emerges in the case of a breakup of the euro, a spokeswoman said.
Now while the Russian government still heavily intervenes in currency markets and is far from a paragon of laisez faire, th e ruble is fully convertible.
Some German states had issued their own would-be stable currency: Baden's was secured on the revenue of state forests, Hanover's convertible into a given quantity of rye.
But Dino Kos, a former chief of markets at the Federal Reserve Bank of New York who now works for Portales Partners, a research firm, notes that the yuan does not meet one of the most basic requirements of a reserve currency: other countries cannot use it to intervene in foreign-exchange markets because it is not freely convertible.
ECONOMIST: America��s debt crisis will be chronic, not acute
应用推荐