East Asia Exchange Rate Arrangement And International Policy Coordination

As one of the most important economical variety in open macroeconomics,exchange rate exerts remarkable effects on economics development of countries.Exchange rate cooperation is one of the important respect of economical coopereation in east Asia under the condition of open macroeconomic. The history of exchange rate coordination in east Asia is limited,and which is placed in the preliminary stage.There existed active respect in exchange rate coordination in east Asia,but it's foundation is also weak in the same time.On the other hand,there also existed some negative factor which restricted coordination.There are three principal element which promote exchange rate coordination in east Asia.Firstly,it'the deepness of the economical integration in east Asia;Secondly,it's the intention to avoiding the policy of beggar-thy-neighbour between countries in the east Asia.Thirdly,to take precautions against monetary crisis and to strive for international economical benefits.The negative factor which restricted exchange rate coordination in east Asia may be divided proximately as follows:1.The difference between countries is obvious,and the level of economical integration is limited;2.there is none axis-country in east Asia.3.there existed political obstacle in coordination between countries in east Asia.We must have clarity knowledge about the element which influence exchange rate coordination in east Asia from opposite respect,only by these can we promote the exchange rate policy coordination in east Asia. This paper introduced the fundermental framework in macroeconomical analyse,which deal with the topic in the angel of the finance---the model of Mundell-Flemin.Then utilized the fundamental analyse method of game theory in field of international economical coordination.All of these expound the necessity of economical coordination between countries in the condition of the open economics from different respect.In the model of Mendell---flemin,national incomes of different countries come into being relationship through trade income and expenses,the level of interest rate of different countries come into being relationship through foreign exchange market,and their level of price also come into being relationship through real exhange rate.When one country was suffered assaultion suddenly,this assaultion was conducted through income mechanism,interest rate mechanism and relative price mechanism,which bring the change on demestic economical variety of different countries,and put the effect on theirs'macroeconomic. The model of prisoner's dilemma in game theory tell us that whatever policy the other country may take,it is reasonable for one's own country to adopt reducied monetary policy,which are all make the benefit of one's own country to maximum.Then,in the circumstance of dispersed policy decision,both country will all take reducied monetary policy.But this result is low-efficiency.If both country think that cooperation is deserved,and decided to carry out cooperational monetary policy,they will achive the lowered inflation rate,this conclusion can be deduced to the situation of east Asia in which more country are implied. There exist three important proposal about exchange rate coordination.Mckinnon proposal,target zone proposal,and the The Theory of Optimum Currency Areas.Mackinnon proposal consider that the reason of resuming fixed exchange rate regime lie in that the international monetary system which is characteristic of floatingexchange rate regime is nonefficiency.It can stabilizing global price stable and exchange rate stable by intentional coordinantion of monetary offerings,and realizing the economical equilibrium.It's important for esat Asia economical integration that considering pegging US dollar system from the respect of both reasonability and fragility. Target zone proposal maintain exerting the exchange rate regime which is more flexible,and the determination of center exchange rate is not based on purchasing power parity,which is determinated by foundmented equilibrium exchange rate that was put forthed by Williamson.Target zone proposal is an perfect exchange rate regime in theory,but because the problem which belong to it's own and the complexible situation between the countries in east Asia,there are many things to do before it is implemented in east Asia. The Theory of Optimum Currency Areas was put forward by Mackinnon and Mundell in 1960's.The currency areas maintain pegging exchange rate system between each others,and exerting united floating on the currency outside the areas.From economical respect,according The Theory of Optimum Currency Areas,the economical relation between the countries in east Asia is weaken than that of European Union,but this disparity is not obviously.The obstacle in economical integration of east Asia lies in the difference between the level of their economical development.Because the level of countries'economical development is in a certain position different from the currency areas which includes China,Japan,Korea,ASEAN is not reality at the present.That's why the monetary cooperation of east Asia is now remained in stage of constituting the east Asia monetary fund. The exchange rate coordination in east Asia now is in...