Abstract: At the start of Yen’s internationalization, there were also difficulties for Yen to be widely used in the trade settlement. It was attributed to the underdeveloped international financial market in Japan, which seems to be similar with the argument of RMB in these days. Since the latter of 1980s, liberalization of financial market was substantially pushed forward in Japan, yet relatively small progress was made in the area of Yen used in the trade settlement.
    Therefore, the researches shifted to follow the pricing mechanisms and characters of structure in the trade, which may be studied in a micro foundation. And the function as store of value for an international currency is ultimately derived by the primary function, such as a medium of exchange. Consequently the weakness of Yen’s primary function results the instability of Yen’s role as a reserve currency. It is inevitable for China Yuan to meet the similar embarrassment, and so the lessons from Japanese Yen are valuable.

    Full text: http://ife.sysu.edu.cn/index.php?option=com_jdownloads&Itemid=527&view=finish&cid=527&catid=4