This study investigates the quantitative relationship between military hard power and monetary soft power. Military hard power is quantified as military expenditure over GDP, and monetary soft power as the growth rate of the exchange rate relative to the growth rate of broad money. Using mathematical and statistical methods, including k-means clustering, calculation of causal correlation coefficients, and analysis of Hausdorff distances between empirical optimal and absolute linear relations, the study finds a clear causal relationship where military hard power supports monetary soft power, but not vice versa. This suggests that appropriate military spending can stabilize and enhance a country's currency value.

Ray-Ming Chen