Bianca De Souza Lima Orsi

Postgraduate Researcher

Postgraduate Researchers, Economics, Applied Institute of Research in Economics (AIRE)


BSc Economics at Universidade Federal do Rio de Janeiro (UFRJ)

MSc Economics at University of Leeds


Award for the best three minute presentation at the VIII Conference of the Association of Brazilian Postgraduate Students and Researchers in the United Kingdom (Abep)



Thesis Title

Currency Hierarchy and Internationalisation: Determinants and Implications for Monetary Policy in Brazil. 


Dr Annina Kaltenbrunner

Professor Gary Dymski


Currency hierarchy; currency internationalisation; emerging economies; exchange rate; inflation; interest rate; monetary policy; post-Keynesian economics.

Thesis Summary/Synopsis

This research aims to identify the determinants of currency hierarchy and internationalisation with focus on emerging economies. Another objective is to empirically assess the implications of currency hierarchy and internationalisation over monetary policy to formulate policy recommendations. The debate on currency internationalisation has become a central issue of discussion, as globalization has increased the volume of capital flows across the countries. In the absence of a single universal currency that fulfils the money functions at the international level, multiple currencies are available for transactions in the international market. The higher degree of integration between countries from the "global north", i.e. developed economies, with those from the "global south" should have enhanced the internationalisation of currencies from emerging economies. However, one can observe that only a few currencies issued by developed countries are generally used at the international level. Within this asymmetric system, currencies can be understood as having a hierarchical rank, with central currencies placed at the highest positions and peripheral currencies at the lowest. Most of the literature on currency internationalisation and hierarchy focuses on central currencies and neglects important implications for emerging economies, such as external vulnerability, exchange rate dynamics and monetary policy restrictions. Central and peripheral currencies can be distinguished by their differing liquidity levels, that is, central currencies are more widely accepted as the currency holder can trade them very quickly without significant losses. As a result, emerging economies have to offer higher returns to attract capital inflows and countries such as Brazil are subjected to monetary policy restrictions. This policy strategy attracts especially speculative capital flows, which seeks for short term investments. Consequently, the exchange rate becomes more volatile and, again, it is necessary to keep interest rates at a higher level, which results in a vicious circle.




Teaching Assistance Experience

  • Statistics for Economics and Business 1
  • Mathematics for Economics and Business 1

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