Study On Monetary Cooperation In East Asia From The Perspective Of Financial Development Convergence

With the development of East Asian economic,the economies of East Asian were tightly linked with others.During this period,the regional economic integration has become a trend throughout the East Asian.However,the financial crisis will spread to other countries easily from one East Asia Economies which outbreak financial crisis.East Asian monetary cooperation could play an irreplaceable role in maintaining financial stability and prevent financial risks.Since the Asian Financial Crisis in 1997,The East Asia monetary cooperation has made some achievements such as monetary cooperation supervision mechanism and monetary cooperation mutualisation mechanism.From the initial "Manila framework","Chiang Mai Initiative"(CMI)to later Asian Bond Fund(ABF)be set up,the East Asian monetary cooperation has made great progress.In 2008,the global financial crisis caused by U.S sub-prime mortgage happened all over the world which impacts the East Asian economics fiercely.However,the monetary cooperation supervision mechanism and monetary cooperation mutualisation mechanism of East Asia exposed deficiency in the global financial crisis.As to the research perspective,The dissertation introduces Financial Development Convergence theory into studying the East Asia monetary cooperation.The research thought the dissertation takes the monetary cooperation in East Asia from financial development convergence’s perspective as the starting point.Based on the review of The Choice of Exchange Rate Regime Theory and Optimal Currency Area Theory,the dissertation analyzes the mechanism of East Asia monetary cooperation based on financial development convergence.Secondly the dissertation analyzes the exsitence of convergence and the feasibility of monetary cooperation in East Asia based on the theoretical analysis.Financially bring some new thought for East Asia monetary cooperation from financial development convergence perspective.The study carry on the qualitative and quantitative analysis approach,combination of theoretical research and empirical research approach,comparative analysis and inductive analysis approach.The dissertation is composed of seven chapters,involving introduction,conclusion and the main body involving four chapters.The main contents are as follows:Chapter one,is an introduction.It mainly involves the research background、method and framework,the current research in foreign and domestic countries,and the innovations and shortages.Chapter two,researches the theory of monetary cooperation and presence the practices of East Asia monetary cooperation.In the theoretical part,the dissertation reviews two theories.One theory is "Theory of Optimum Currency Areas"(OCA Theory)which works as the basic theory for monetary cooperation.The other theory is "Choice of Exchange Rate Regime Theory".In the second part,the dissertation discusses the status quo of monetary cooperation practices in East Asia as well as the reason of no effective cooperation.Chapter three,research on the mechanism of East Asia monetary cooperation based on financial development convergence.This chapter aims to explore the mechanism of East Asia monetary cooperation in capital flows,financial innovation diffusion as well as economic growth convergence on the theory basis.Chapter four and Chapter five emprically analyzes the exsitence of convergence and the feasibility of monetary cooperation in East Asia based on the theoretical analysis.Chapter four,emprically analyzes financial development differences(by using Theil index)and the financial development convergence in East Asia.The results show that the financial development difference shows a downward trend and financial development convergence existence.In Chapter five,OCA model and VAR model which used East Asian financial development convergence as variables is employed to analyze the OCA index and the simulataneity of shocks.The empirical results suggest that,there is relationship between fiancial development and monetary cooperation in East Asia.And it is feasible to establish sub-optimum currency areas which exsistance significant financial development convergen.Chapter six,proposes the route and the choice of China in the East Asia monetary cooperation.The last Chapter is the conclution of the dissertation.