On The Study Of Eastern Asia Establishing Exchange Rate Cooperation Mechanism With Obscure Interfering Boundary

At the beginning of this article, the relevant regional exchange rate cooperationmechanism theories are summarized and commented, which lays a hiding foundation for thefollowing study of the Eastern Asian exchange rate cooperation mechanism with obscureinterfering boundary. The reason why it happens is that the following further study is based onthe precedent. The second part of this article turns to the study of Eastern Asia's exchange ratecooperation mechanism. No matter from the short period or long period, Eastern Asia reallyneeds monetary integration and exchange rate cooperation. The mainstream study of theEastern Asia's exchange rate cooperation is to establish exchange rate target zone on the basisof pegging the combinational currency basket, which hasn't been put into practice in EasternAsia. Therefore, the article studies why the Eastern Asia's exchange rate cooperation hasn'tbeen performed according to the theory, that is, the difficult situation and problems ofestablishing exchange rate target zone. There are many problems, not only because of theweak basis of the Eastern Asia monetary cooperation and the center currency on the basis ofcombinational currency basket which will affect the maintenance of the explicit exchange rateboundary, but also in the fact that the exchange rate target zone will meet difficulties in thisarea where every country puts its own interest on top of the overall area's. In view of the above problems and the enlightenments the precedent regional exchangerate cooperation theories have brought, this article corrects the explicit exchange rate targetzone and designs a plan which conforms to the real situation and betters the Eastern Asianmonetary cooperation. Eastern Asia should set up the exchange rate cooperation mechanismwith obscure interfering boundary. And meanwhile, in order to give a stable motor power forthe unstable exchange rate level, this article suggests that this area should set up a bilateralexchange rate decisive factors' zone, which makes reference from the economic identitythoughts of Euro Area. This more loose and free exchange rate cooperation mechanism, doesgood to the Eastern Asia for them to better set an exchange rate cooperation flat, and mostimportant of all, it can avoid the shock of currency crisis. Therefore, the third part laysemphasis on the obscure interfering boundary and its effect analysis. Since this article brings forward a brand-new idea, how will Eastern Asia establish theexchange rate cooperation mechanism with obscure interfering boundary? This is what it willanswer in the fourth part. The relationship between each country's currency and centercurrency as well as the relationship and coordination between different currencies in EasternAsia involve the choice and determination of the center parity, and the clearance andmaintenance. And besides, the Regional Exchange Rate Cooperation Regulatory Body shouldbe established which facilitates the coordination and maintenance of the exchange rate regimein Eastern Asia.