The Euro Pattern Research On Internationally Regional Currency Cooperation

This article takes regional economy integration in the globe scale and the widely developing regional currency cooperation as the selected topic backgrounds, takes the Euro pattern in internationally regional currency cooperation as the inspection object, intends to, through systematical research on this model's single money alliance, and further deepens the theorists'understanding regarding to the formation mechanism of internationally regional currency cooperation, the historical evolution, the working situation and the developing prospects. Thereby we can strengthen the functions of the Euro pattern as a classical case in the currency history, the international economics, the macroeconomics, the public choice theory, the international politics economic and the related disciplines, enrich these theories, meanwhile provide the experience which may be used for references, for the marching-forward East Asian currency cooperation and other regional currency cooperation. In this article many kinds of research methods are synthetically used, among which comparison analysis method is widely used. By adopting this method I conduct the research on the influence degree of the many kinds of different factors on the Euro exchange rate trend, the non-balanced effects that the market integration brought to the different member nations in the Euro zone, the different influences through the eastward expansion on the new and old member nations in Euro zone, as well as a Euro pattern and the currency substitution pattern and the similarities and differences of the multiple currency cooperation pattern. Using the empirical analysis method I conduct the research on the fluctuation of Euro to US dollar exchange rate, the extent to which the Euro zone meet the optimal currency area, the operational practices of the uniform monetary policies, the difficult conditions the common financial disciplines face, and the similarities of new member nations'major economic targets after the eastward expansion. Adopting the game analysis method, I conduct the research on the formation mechanism of the Euro pattern balanced structure and the gambling process which will be launched by China and Japan in the course of the East Asian currency cooperation. Some essential conclusions have been drawn below after the research in this article:1. The formation of Euro pattern is the results of the combined functions of the thoughts, culture, politics, economy, society, currency and many other kinds of factors through ages in Europe area. It is either the rational choice of the European, who have experienced several-hundred-year flames of wars, or the European reluctant choice under the American hegemony; it is not only the inevitable result which the economic integration develops unceasingly, but also the result which the numerous knowledgeable men pursue unremittingly.2. Euro exchange rates to US dollar overall have been showing the rising trend ever since Euro came into birth nine years ago. But because of many kinds of factors'joint influences such as the economy, the currency, the policies, the international payment balance, the exchange rates show ups-and-downs and fluctuations, in which the economic and the monetary policies are playing the leading role. Meanwhile analyses indicate that the birth of Euro has not fundamentally shaken the hegemonic position of US dollar in international currency system. In the Euro to US dollar exchange rate trend, US dollar is always playing the leading role.3. The Euro pattern's realistic difficult position fundamentally shows that the economic fundamental aspects in the Euro zone have similar trends to some extent, but the country characteristics are still obvious. While we fully understand the huge economic interests that the Euro pattern has brought, we must acknowledge its limitation. The currency cooperation is not the marvelous medicine which can undertake to provide treatment for all kinds of problems the European countries face. On the contrary, the birth of Euro not only cannot solve many problem which many countries face in currency level and cannot solve, but also causes the structural problems which have been accumulated for a long time in the European economy to be more prominent. At present, the Euro zone faces the pressure of structural reform and the tasks of policies coordination are more urgent than ever.4. The internationalized degree of Euro and the comprehensive strength of Euro zone have insured that at present the Euro is already a second strongest and important international currency, but if it wants to hold an equal position with US dollar, then it requires a very long time. However the existence of"Triffin dilemma"has insured that the international position of US dollar in the future will inevitably drop, and it is the historical necessity that the international currency system should change from US-dollar-oriented system to the one in which Euro and US dollar should share half and half leadership.5. Wholly speaking, the eastward expansion will be advantageous to the economic future development of the Euro zone and the enhancement of political status, which has the advantages to the new and old member nations, but the effects of eastward expansion is imbalanced in the different member nations, the new member nations' benefits must be bigger than those of the old ones. Meanwhile the eastward expansion process will also bring serious challenges to the present development of the Euro zone, and thus will reduce speed of the Euro zone's development process to a certain extent. But the long-term development trend of the Euro zone will be irreversible, and the prospects will be bright.6. Compared with other currency cooperation patterns, the characteristics of Euro pattern are mainly displayed in the step-by-step development paths from the economic cooperation start, which showed that this pattern gradually had moved toward from one kind of currency in one country to one kind of currency in an international zone, eventually a single money alliance had been finally established in. many sovereign states. The Euro zone as a new type of international regional currency, its foundation of value formation neither relied on gold nor relied on a sole nation, while it was mainly formed by the whole price stability degree in the monetary area. In addition, the Euro pattern is a balanced structure which is formed through the games in many countries.