Study On Exchange Rate Cooperation Among Asian 10+3

At present, the establishment of the integration of various free trade investment areas is catching on like fire in 10+3, which demands greatly on the core cooperation of monetary and finance and the advanced cooperation of exchange rates. On the other hand, the cooperation of exchange rates pushes the development of the integration of trade and investment forward. Therefore, with the deepening influence of dollars on areas, the emergence and expansion of Euros, 10+3, after suffering from the financial crisis, puts the cooperation of exchange rates on the agenda. Consequently, it becomes a hot topic in academic circles.After studying carefully and analyzing theories of and experiences in the cooperation of exchange rates in various areas, the author, based on the present situation in 10+3, discusses theories and feasible schemes workable for the cooperation of exchange rates in 10+3. In order to reach this goal, the paper makes a depth study on the following aspects: the necessity of the cooperation of exchange rates in 10+3; the pros and cons of the cooperation; the conditions for the cooperation; how to cooperate and China's participation in the cooperation riveting on national interests, etc. Then, the paper draws the following conclusions:After expounding the characteristics of the exchange rate system in operation and extant problems and the specific demand of the development of an individual area on the exchange rate system, the paper finds that due to the underdevelopment of the financial economy in 10+3 as a whole, the weak monetary competitiveness, the economic development of 10+3 needs a stable exchange rate. However, in the existing international monetary pattern, the cost of individual economic bodies striving for a stable exchange rate is very high, and it would easily cause the devaluation of competitive and infectious currencies and lead to financial crisis ultimately. Only by the cooperation of exchange rates will 10+3 avoid its outburst. So, with the broadening opening-up in economy, it's necessary for 10+3 to engage in the cooperation of exchange rates and change irrational arrangements of exchange rates in areas to enhance the competitiveness of regional currencies and gain economic autonomy.In discussing what effects the cooperation of exchange rates will bring to 10+3n economy, the paper finds that besides positive effects such as stabilizing 10+3n exchange rates, improving the welfare, creating trade investment opportunities and stimulating the economy, the cooperation has negative effects such as demanding on cooperators to pay certain fees. So, it may cause the adverse effect of cooperation. After analyzing all causes which lead to the adverse effect of cooperation, the paper points out 10+3 needs a formal and institutional cooperation of exchange rates, rational distribution of benefits and sharing cost and to prevent the occurrence of the adverse effect of cooperation. Moreover, the paper puts forward constructive measures to how to undergo the cooperation of exchange rates. Then, after debating on the sustainable cooperation of exchange rates in 10+3 and further analyzing the reliability of the cooperation and the rational disposition of the power, the paperargues that all parties should strengthen the coordination in macro-economic policies. Furthermore, in coordination, the disposition of decision-makings would make small countries go beyond the limit of their economic scales, then, it forms a power pattern with big countries as its leading force. In this way, the cooperation of exchange rates will proceed along a sound road, which calls on China to play a leading role in the cooperation of exchange rates in 10+3.The above mainly analyzes the necessity of the cooperation of exchange rates in 10+3 and its economic effects with the view of monetary and financial. As the cooperation of exchange rates is the advanced stage of economic cooperation, it require highly on the trade and investment integration of each side. However, does the cooperation of exchange rates suit...