Selection Of Monetary Cooperation In East Asia And The Rmb Exchange Rate System

The dissertation based on some hot issues of modern international economy, such as the emergence of Monetary Cooperation in Eastern Asia and the viewpoint of underestimating RMB's exchange rate etc, deals with the connection as well as the cost and benefit between monetary cooperation in Eastern Asia and The Choice of RMB's Exchange Rate Regime.Chapter one defines some concepts, such as international monetary corporation and international economic policy harmony,etc. The author discusses the causes of international monetary crisis. Then the author reviews the Mundell's theory of OCA and its recent development, analyzing the counter-effect of international monetary cooperation. Based on these theoretical works, the author summarizes the typical viewpoint about which is the better exchange-rate regime between the fixed exchange rates and the floating exchange-rate, analyzing the recent development of the choice of exchange rate regime , such as the theory of original sin and two poles approach.Chapter two analyzes the background of Asian financial crisis,such as the shortcoming of Asian pattern and Washington consensus, etc. Then the author analyzes the necessity, possibility and obstacle of East Asian monetary cooperation, explores the theoretical costs and benefits of East Asian monetary cooperation by using the Hamada graph and the game theory.Chapter three compares the advantage and disadvantage of some key money in the East Asian monetary cooperation from the positive economics view, such as Yen, Dollar, RMB and the Asian Dollar. The author discusses the frame and content of East Asian monetary cooperation, making a full review on the necessity and the possibility of China taking part in East Asian monetary coordination.Chapter four discusses the benefits and costs of the option of exchange rate regime and the necessity of the choice of Exchange Rate Regime in China from theoretical view. After discussing what the optimal exit strategies is in East Asian currency area, the author puts forward the hypothesis of target areas of exchange rate between RMB and currency in Eastern Asian countries.Chapter five discusses the correlation of the fluctuation among all kinds of monetary exchange rate in East Asian and RMB's optimal monetary copartner by using a large quantity of statistical data from the view of the positive economy. Finally the author gives some advices about how to build the monetary union between RMB and currencies in Eastern Asian countries and corresponding policy on decision-making level.The author argues that participating monetary cooperation in Eastern Asia is a good way to establishing a more beneficial RMB exchange rate regime in order to prevent financial crises. However some difficulties exist in monetary cooperation in eastern Asia, such as the imbalance of economic development in different countries, lack of core nation and weak political foundation for monetary cooperation. Firstly, it is necessary to set up a regional crisis-preventing organization, then develop a linkage mechanism of foreign exchange rate, and finally shift to an Asian single currency area system.